I'm sure this has been discussed repeatedly, so I apologize in advance...

[dro205]

I was wondering about a couple of things...

1) Why is there a penalty fee for upgrading phones before the contract expires? Operating under the assumption that the goal of the company is to sell as many phones as possible, this seems counterproductive to that goal. I'm sure there's a logical explanation. I'm just not sure what it is.

and...

2) What is the penalty fee for upgrading a phone before the contract expires?

Thank you very much for your time and assistance! I really appreciate it! Have a good day!

[#2 · Accepted solution]

dro205 wrote:

I was wondering about a couple of things...

1) Why is there a penalty fee for upgrading phones before the contract expires? Operating under the assumption that the goal of the company is to sell as many phones as possible, this seems counterproductive to that goal. I'm sure there's a logical explanation. I'm just not sure what it is.

and...

2) What is the penalty fee for upgrading a phone before the contract expires?

Thank you very much for your time and assistance! I really appreciate it! Have a good day!

1) There isn't a penalty.

2) you can't get a discount upgrade before the contract expires. You can get a phone at full price

Ok say you get a new iPhone 6 16 GB that is normally $650. Verizon is letting you have that for $200 plus the $30 upgrade fee. So that's $420 discount. You're getting that discount because you are promising to stay with Verizon for 24 months. That 24 months is where Verizon makes back the $420. Now if you could upgrade sooner, then Verizon is not making back that $420. It's simple, if you do not want to wait 24 months between upgrades you can either pay full price upfront or get on the Edge plan.

[dro205]

I gotcha. I was under the impression that there was an additional fee you had to pay when you upgraded early. Thank you for clarifying my friend!