For many people who want to reach the latest and greatest mobile phone, which is obviously the iPhone, it may be annoying if you can buy a lot of money for the phone, paying for expensive mobile service charges and then bidding for a two-year contract where you become AT & T's annuity! Many people do not like the inflexibility associated with the contract, as it is a very expensive change of service or other service company.
The reason for the contract is because the prepaid price for the phone does not cover AT & T's costs; therefore, you still pay for the phone after you buy it and AT & T may lose money if you leave your service plan early. This is not a big reason, but because the contracts exist.
The best way to avoid a service contract is to purchase your iPhone from locations other than AT & T. The easiest way to do this and the most affordable way to buy an existing one from a person who updates a newest phone model. You will often find some great deals on Craiglist. If you bring your own phone to AT & T, you can get an iPhone service without committing yourself to a long-term contract, which saves a lot of flexibility. Although you do not have the latest and greatest phone, you will not be subject to a restrictive contract. You can see that you are purchasing the latest phone from AT & T, but the premium for the latest phone is about the same cost as if your contract with AT & T was interrupted so the choice is usually a wash.