Simple answer, the cell phone company sells the phone at a discount knowing it will recoup the cost over the length of the contract. If you break the contract, they still get their money.
Do cell phone providers take a loss when giving you a deal on a new phone....seems like they are charging the addict for the needle. they get ya with a new two year agreement!!! Has anyone had any luck with getting a new phone from Verizon before there "new every two" or their contract was up???

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