And, frankly, Dino, it's none of your business how I'm paying for my phone. I was talking about one way I could have bought my iPhone 6, one most people go with.
The fact is I got a better deal than that. I'm actually not buying on contract, I'm buying on AT&T's Next program, which costs me about $36 a month for the iPhone, which means I get to take advantage of AT&T's off contract rates. . . and with their family plan it's even better..
But a year from now, when the next new iPhone comes out, I can trade (or, I can sell it privately, pay off the balance) this one in and upgrade. I won't have to wait two years until my service contract, which I would have to pay for monthly anyway, expires to get a new phone. My out of pocket cost, if I DID keep it until I owned it, are only $720 plus $56 tax, or $776 for a $950 phone, not counting sales tax. . . And I got $275 back on my old iPhone on a debit card which I first used to pay the sales tax, so it now has $224 left. . . Meaning my iPhone 6, if I keep it until I own it, will cost me only $552. I'm being subsidized by AT&T's buying power and promotion. I suspect, I will upgrade when the iPhone 6s comes out. . . then again, a year later, when the iPhone 7 is released. I can afford it. It costs me no more, in fact even less, than upgrading every two years.
You still miss the point. You are paying $115 a month for your cell service, plus $36 per month for your phone, and you have a contract. You can get much less expensive SiMs, and without contract. By electing to subscribe to AT&T, you are paying a huge premium for your service. AT&T is not doing you any favours, and you would be miles ahead cost-wise with a normal unlocked phone and no contract, if you would do the calculation.
Cellphone contracts are an American phenomenon. NOBODY else around the world (well, except Canada)’ does this. Everywhere else, you buy a phone of your choice, a SIM of your choice, and go.