NEW YORK ( TheStreet) -- Fellow TheStreet contributor Anton Wahlman wrote an excellent article questioning the logic of the prevailing way we secure smartphones -- on a two-year contract with a large carrier such as AT&T (T - Get Report), Verizon (VZ - Get Report) or Sprint (S).The carrier subsidizes the phone -- $450 a pop for iPhone -- making its money back, and more, throughout the life of the two-year commitment. Wahlman argues that we're all suckers for signing the seemingly sweet deal. Basic math proves his point. You would be better off taking a hit on the phone today and coming out ahead over the life of the deal with a less expensive monthly plan.
Upgrading to iPhone 5 Despite AT&T, 2-Year Contract
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