The iPhone 5 was finally announced last night by Apple and it has lived up to each and every one of the rumors apart from NFC. So if you want to get it but are still under contract, you may be in a pickle. The iPhone 5 will be available soon starting at $199 for the 16GB with the 32GB available for $299 and the 64GB for $399.
How to upgrade to iPhone 5 is you are still under contract
If you want to get your hands on the new iPhone 5 when its available and you are only half way through your two year contract then you will have fees to pay to end the contract early. However this may not be quite as bad as you might think.
If you are with Verizon then you can expect to pay $350 minus $10 for each month that you have had your handset, however if you have made it to the half way mark than it gets better. You would have to pay around $230 to buy out of your old contract, meaning that you would be out of pocket by around $200.
You could however sell your old smartphone on eBay or at Gazelle, who would give you around $240 for your 16GB iPhone 4S in good condition. With an eBay instant sale you could get $275.
If you only bought the iPhone 4S recently then you have 30 days with AT&T to return the device after activation and with Verizon you have 14 days. With the Apple Store it is 30 days too.
So all is not lost if you have bought the iPhone 4S and you are half way through the contract. You could sell your old device to pay the get out fees and then take a new contract for the iPhone 5. However bear in mind that next year you may be faced with the same problem if Apple release an iPhone 6. So you should also consider sitting back and letting your 4S contract run its course, making some money when the iPhone 6 comes out as well… accessories anyone?