It's not really $50, though. The cost of the phone is built into the contract. In most cases, it is actually quite a bit cheaper to just pay the full retail cost of the phone and get service without a contract than it is to take the contract deal.
If you have good credit you can pay ZERO down and break the cost of the phone into 24 payments. Of course you can buy some walmart chinese special that sucks all around. The service sucks and you will be having buyers remorse.
Kind of like wii u owners that bought their console for 350 and had a price drop months later. Then the little 3rd party support it had just dried up. I personally get a good gear sure it cost a little more but it is worth it.
I don't think you even need good credit to do that. Almost everyone I know does that and most of them have awful credit. I don't do that, though. I just chose to buy a somewhat cheap phone and I put it on a plan that limits me to 100 minutes with unlimited texting and data. It costs me $60 per month. The last time I had a contract phone, I was paying about $140 per month. The data is slower, but I really don't use my phone much for anything other than texting and the occasional call, so I just don't care. If phone games were better than games on the 3DS/Vita, I would consider getting a better phone. They aren't better, though. In fact, they are much, much worse.
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