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A non-contract iPhone (in the US at least) costs typcally $450 more than it's contract counterpart. The benfit is that with out a contract, you are not obliged to hold onto that same phone for 2 years (mostly), and if you want to upgrade before your contracat expires, you have to pay an annoying fee to get out of your contract.

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Q: What is the difference between a contract iPhone and a no contract iPhone?
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