Americans love their smartphones, but they sure are expensive devices. Most popular smartphones in America cost between $450 and $850, with an average price of about $650. However, most consumers are used to paying about $1 to $200 in a store for their phone. So what’s the catch? Well, cell phone companies decided that they could make people sign up for big, expensive two-year contracts in exchange for giving customers a discount on phone at the time of purchase. On average that discount is about $450. This whole contract thing was fine for a while, but over time customers got frustrated with this system for several reasons. 1. Being stuck in a contract for 2 years. 2. Paying activation fees. 3. Paying $200 or more in-store for the newest phones. 4. Expensive cell phone plans that charge you a hidden subsidy even if you own your phone. The...
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