The October 19th issue of TIME magazine has an interesting article on changes in the cell phone industry. Goaded by T-Mobile, major carriers like Verizon have eliminated two-year contracts. Other carriers, like AT&T and Sprint, offer both traditional and contract-free plans. Customers can either buy phones at full price or finance them over the long term.
Unlocked phones that work with any carrier are now common and they make it simple to try different providers in search of the best deal. However, unlocked phones are typically sold at full price, and that may cause sticker shock. As an example, a 16GB iPhone 6s will cost about $649.00 and the same phone bought as part of Apple’s upgrade program will cost about $779.00 over two years.
I think this is a great opportunity for companies such as Motorola which offers the unlocked 32GB Moto X Pure Edition for $449.00. I have a 32GB Moto X Pure Edition and it’s the best phone I’ve ever owned. I’m using Cricket Wireless (owned by AT&T) and I pay a total of $35.00 per month for unlimited talk and text and 2.5GB of high-speed data.