Need to purchase a new iphone. What is going on with pricing?

You can't switch to a new carrier and get old plan contracts on Verizon or Sprint.  All carriers have switched to no contract, full retail pricing. 

Switching to Verizon or Sprint requires using their currently offered plans, which don't offer contracts either.  T-mobile dropped contracts more than 3 years ago.  AT&T dropped contracts for all customers in January. 

Depending on your plan, this may be cheaper than contracts.  It may also be cheaper to look at new plans.  (Do your math very carefully as new plans are often NOT cheaper)

 Here is the math on your $249 discount on a $530 phone on Verizon for old customers able to get a contract.

$249 up front.  $20 more a month for 24 months, $480, total  $729.   

good grief..so I'm screwed no matter what.

thanks for the answer

@cmcnamara3

For decades carriers have buried the cost of phones in the service cost.  This is why we had to sign 2 year contracts - so the carrier could break even on the phone.  

It lead to bad consumer habits.  One of them is thinking phones are an entitlement with service.  We often see posts from people who break or lose a new phone and think it's like replacing a dropped ice cream cone.   

Phones and service have both increased in cost.  In order to make it fair, carriers have separated service from equipment.  The line for warranty and insurance is being made more distinct also.  

It allows someone like me to keep my service cost low.  The adults on my plan have been required to buy phones at full price.  

You would be amazed how careful teenagers are with a phone they paid $600 for.  

This was written for AT&T, but it applies to all carriers.  

https://forums.att.com/t5/Community-Blog/Wireless-Service-10-Things-You-Need-to-Know/ba-p/4886759

I haven't purchased a phone from AT&T in 2.5 years, but have purchased a tablet and 6-8 phones in that time period from outside sources.  You can't buy an iPhone for $200. But plenty of new android phones are sold for under $250.   

If you are not married to an iPhone then there are several options, ranging from $100 - $500 for an Android phone.

You purchase from Amazon, Motorola, etc direct.

I will second @wvmstr recommendation of Amazon.  They have a couple phones with adds on the lock screen. That are very nice and subsidized by Amazon.

AT&T phone prices  (except for price fixed iPhone) are too high.  I can't afford $600-$800

If you can live with the ads then $60 is dirt cheap. 

Inexpensive phones change the whole dynamic of phone ownership.

Rather than spend  $700 - $900 for a phone in a two year period, if you are lucky enough not the break it, you spend $60.

If you break it, you remove the sim and toss the phone. You can do that 10 times in a two year period. With a smile on your face, and if you want a middle finger proudly up in the air, and still save money.

Some of the Blu phones on Amazon have very nice features such as Oled displays (far superior to what iPhones had up until this point), fingerprint readers, gorilla glass, quick charging, and extra large batteries that last up to 3 days. The phones are unlocked and you can switch from any provider at your heart's desire, provided you stick with GSM providers.

There are some downsides to Blu phones: chances of getting an OS upgrade are slim, and they do not have all the frequency bands that the carrier use. Some homework is required.

If you buy a Motorola phone X Pure Edition, those are also unlocked, but those work on all US carriers.

Unlocked phones typically do not have all the crapware that comes with iPhones and Galaxies.

Your battery for that reason will last much longer.

I have had 2 smartphones since switching from a Razr in 2010. 1 iphone 3gs where I paid $300 and committed to 2 years and 1 4s for $49 and committed to 2 years with ATT, neither one of these iphones have been out of their otterboxes purchased at the same time as the phones.  My 4s is showing signs of age with performance issues today so I am looking into a new smartphone. I buy my phones like I buy my cars, when they stop working and cannot be fixed.  I am the only person in my household who owns a smart phone as my husband refuses to get one and am a 49 year old woman who has never abused the phone plan I have had since the 90's with ATT and has never abused any smartphones or anything else I own for that matter.

I will be looking into other carriers and smartphones in this current climate.

Thank you for your time.

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@cmcnamara3 wrote:

good grief..so I'm screwed no matter what.

 

thanks for the answer

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As @lizdance40 has shown, we've always been "screwed."  It's just more obvious these days than it used to be. 

Be aware any quotes are for service only.  Do your own math.