Last year, I found it crazy. It made more sense for me to leave my carrier, eat the termination fee, and buy a new iPhone with another carrier than stay.
A year later, that wacky world remains true on iPhone 5 pre-order day.
Stay for $650.... Consider my current situation with AT&T. I purchased the iPhone 4S last year when it came out, so I'm not eligible for an upgrade. I can't even do an "exception upgrade," where AT&T will let you upgrade early by adding $250 on top of the two-year contract price for a phone. There are no exception upgrades for the iPhone, I was told by AT&T, when I called yesterday.
Instead, if I want the basic 16GB iPhone 5, I have to pay the full $650 list price, rather than the $200 discounted price for those who sign a two-year contract. That's a $450 difference.
Or save $225 by leaving? This is where jumping ship to Verizon makes sense. If I go over to Verizon as a new customer, I'll pay the $200 discounted price. I'll also have to pay my ATT termination fee. That started at $325, then was reduced by $10 for each month I had the phone. It's now $225. Adding that to what I'd pay Verizon means the total price of my iPhone 5 would be $425. That's $225 cheaper than staying with AT&T and paying full price.[Read more]
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