Last time I checked financing options, there were a lot of them. One of them is called "credit card". How do people finance OTHER purchases like TV sets and computers? If I am to believe the arguments about carriers in the US, people can't afford $500-600 with the result that they "need" to go for a carrier branded device. But the question is: if $500-600 is too much, what do they do when they want a TV set or a computer, two products that retail for that amount? I mean, there's no carriers involved there?
Joke aside, people has to learn basic device economical mathematics:
Device on contract: $0-299 + $100 x 24 = $2400-2699.
Device off contract: $100-600 + 45 x 24 = $1180-1680.
So the argument that a device is "cheaper on contract" is downright wrong. Regarding "spreading the payments" - it is very expensive payments per month we are talking about. If you can afford paying up to $299 in store, you can certainly afford paying up to $299 down and the rest on a credit card if you can't afford the whole sum in cash.
If you buy a Sony device, there are Sony Financing available.
It is also worth to mention - for those who believe in the "cheaper on contract/spreading the payment" arguments that the Sony Xperia Z can be bought in Sweden for 0-$199 down payment in store and then contract with 5-15 GB of data for between $41-70 per month (many other options are available). In Denmark, you can get it with 100 GB (yes, 100 GB) of data for $70 per month, $0 down payment in store.
So yes, it is necessary to compare prices in order to get a proper perspective.
And yes, buying a T-Mobile Xperia Z is a far worse option than buying the C6602 and put it on a decent prepaid plan.
And again: US consumers can buy TV sets, stereos, BD players, refrigerators, cars... you name it WITHOUT a cellular carrier involved subsidizing the products. The same credit card that works for the purchase of a new TV for $600 can be swiped in the same terminal when a mobile device for $600 is ringed up at the checkout counter (just to let people know).
So no, defending the carriers just doesn't fly too well.
Paying around $50 more per month (the price difference between postpaid and prepaid) on top of the down payment of $99-299 is a far worse deal than even the worst of the credit cards (interest perspective). Financing $300-600 on a credit card is certainly a better option - there are even offers about "interest free 12 month payments" in some cases.
It is just a very bad economic sense when you are paying up to $1200 MORE or DOUBLE the device cost to a carrier "in order to spread the cost over time".
I can buy THREE (3) flagship devices for the same total cost as the carrier affiliated population are paying for ONE device. Simple mathematics: I save $1000-1200 over two years with buying it outright so there are TWO additional devices I can buy beside the original one. So yes, buying outright is a completely SUPERIOR option - not only economically but also device wise. I can buy whenever I want (I got my Xperia Z back in March) and are free to choose whatever I want without being forced to wait for the carrier to bring it in.
To me, it is downright funny to see how the US consumers accept waiting for months for a device, just to get it branded and crippled - not to talk about the huge amount of devices that are NEVER to be sold here. The US cellular market is inspiring in the same way as Romanian grocery stores 30 years ago: very limited selection and a lack of 99% of the potential products.
Check the global market and see for yourself what the carriers doesn't allow you to get.