With the release of the new iPhone 5 many iPhone 4S owners are considering whether to get the new device. Some are on contract and could have around a year left, which means take out a new contract and get a discount for early upgrade. However the discount is nothing if you compare it to the full upgrade discount. This typically means a drop in the price of the iPhone 5 16GB to $200, with tax added on top.
iPhone 5: Cheapest way to upgrade to one
If you are close to the end of your contract then you will not be eligible for full equipment renewal and this could mean paying out $510 for the iPhone 5, with tax. The full price for the iPhone 5 in California is $715. Of course there is the possibility of getting the new device for full price and then signing a new contract when the current one ends and then selling your old phone. This would offset the cost of the full price device.
There is actually a much better alternative to any of the above, but you may not want to take it as it may seem like the tactics involved are not above board. On saying this they are in the legal confines of the service provider, if your provider is AT&T or Verizon.
So just how can you get the iPhone 5 and pay less than the full asking price at retail and not have to sign a new contract? The folks over at GadgetReview have found a solution:
Begin a new line of service using your current plan. You then get your hands on the iPhone 5 for a subsidised or discount price. You have a contractual obligation of 14 days, after which you can then cancel the line of service. AT&T will charge you an early termination fee of $325 and Verizon will charge $350, You can then keep the new iPhone 5. The price you will have paid with AT&T is $325 with tax and with Verizon $350
This means that you could essentially get the iPhone 5 with $100 to $150 off the retail cost and you won’t have a contract of 2 years.