Depends on the price. I originally was going to do the contract thing because that used to be the cheaper way to get a new phone and on first glance, the phone itself is cheaper - but Sprint adds a $25/month charge just to allow you to use said phone! Absolutely ridiculous! So, it was cheaper to pay for the phone monthly (I am not leasing it, just doing monthly payments for having bought it; I am not interested in leasing a phone) at ~$32 than to pay half the price of the phone upfront plus pay a $25/month fee. The monthly payments isn't a service contract, but it is a payment plan contract and I would owe them the remainder of the phone cost if I were to cancel my service before it is paid off (a two-year plan). Oh, and I don't trade in my phones, either, especially since I need my previous phone in order to set up my new phone (including transfer certain backups and files and all that the phone store employee wouldn't be able to do).