Why do phone companies give people a two year contract?

Answer #1

Good question.. I have no idea. I don’t think there is a specific reason why. It just seems like a reasonable amount of time to keep a phone, so why not. Sorry if this was no help haha.

Answer #2

They release a new phone every year. So if you want the new phone you have to break the lease, buy the new phone and heres the kicker, NEW CONTRACT. thats good for two years. then they come out with a better phone the next year. Also the likelihood that your phone will break quadruples when going from one year to two.

Answer #3

$$$$$$$

Answer #4

It’s guaranteed income for them for the next two years. And even if they haven’t received the money, they can borrow against that amount.

Answer #5

To prevent you from always switching from company to company in order to always be getting the best deal. This practice costs the company time, recsources and revenue. They want to “invest” in you so to speak for at least 2 years to make some money, then, they hope you are happy with their service and stay with them.

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