Subsidized Bound to Contract Phones: To Buy or Not To Buy

The moment you plan to buy a smart phone, or the moment your contract is about to expire, you come across the same question- Whether to go for a subsidized phone again or choose a non subsidized phone? Well, this is the common question hitting most of the Smartphone users all across the sates and also the other parts of the world. What do you think?

Well, it is true that phones in both the formats have their positives and negatives. Before making any final decision you need to compare the pros and cons of both the types and then make a final decision depending upon your calculations. In this article, you can find out the pros and cons of subsidized phones which will definitely help you to make a final decision.

Pros of Subsidized Phones

  1.     Subsidized phones are the best solution if you want to stick with your carrier and love to use the best smart phones available in the market. If you are happy with the services of the present carrier and don’t want to transfer to another one, then you save a reasonable amount in the form of upfront payment for a new phone.
  2.     If you want to switch to a new phone in the midst of a contract, say in a year, in that case too, you can save a lot with a subsidized phone. What you will have to do is to pay a cancellation fee for the previous contract and renew it with the carrier and enjoy using your new Smartphone. This will also cost you much less than the actual price of the smart phones.
  3.     If you are availing the service of a particular carrier for many years and enjoying a very good plan, then it is better to continue with the contract. Otherwise, you may have to pay a much higher amount to the new service provider. The point is that using subsidized phones from a particular carrier can bring you lots of good service plans, which you will definitely miss in case of a non subsidized phone.
  4.     Another great benefit of subsidized phone is that whenever you plan to move out of the contract, the carrier will most probably offer you various incentive plans and also lucrative offers to retain you as their customer.

Cons of Subsidized Phones

  1.      Though not advertised, but the fact is that, many times the carriers offer a cheaper service plan for those without a contract. The carriers have their own reasons not to publicize the benefits of unsubsidized phones. If this is the case with your carrier too, then you better know what to do. If your contract is about to expire, you better confirm about the service plans in both the formats.
  2.      There is another big reason for not choosing subsidized phones. If the carrier realizes you as a nonprofit customer, and your contract is about to expire, they will not be giving any effort to retain you as their customer. If you don’t avail the extra benefits then there is no reason to go for a subsidized plan, right?

Well, these are some of the pros and cons of subsidized phones. On the basis of these points and your personal choice, you can now easily make a final decision.

This guest post has been written by Kapil Singh who recommends as the best available service for recycling cell phones.

Learn more the author of this post:

I was a Computer and Information Technology student at Purdue University. I have always wanted my own website and have been fascinated with technology my entire life. So here I am, what's next?
  • Isaac Brown

    I think T-Mobile is the only US carrier that offers lower cost plans for unsubsidized phones and it is ALWAYS cheaper over the course of 2 years to buy the unsubsidized phone and do the cheaper plan (usually 4 to 5 hundred dollars cheaper). They used to also have no contract AND be cheaper but that changed during the attempted AT&T merger.
    On the other carriers it only makes sense to buy unsubsidized phones if you also buy the subsidized ones when your discount comes due and sell them for profit to offset the cost of the unsubsidized phone. For instance, if you want the iPhone 5 on Verizon, buy the unlocked version from Apple ($650) and the Verizon version from Verizon ($200) then sell the Verizon version on Ebay (currently sells for $760 on average) and you now have an unlocked iPhone 5 for $90.

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