C3PX said:
Most cell phone companies will give you a phone when you sign their contract, either way you still have to pay the monthly fees, so why not switch to a smaller, sleeker, more practical device when given the chance.

Just so both of you know, cell phones are a horrible example to use. You get the phone for "free" because the monthly bill is subsidizing the cost of the phone. That's why there's such a hefty fee to cancel your plan before the contract is up. You're essentially paying for the phone at that point.

Many companies will give you some kind of discount when upgrading to a new phone, but you likely won't get a "free" phone without switching to a different company altogether. Until recently, cell phone numbers weren't portable, so switching companies wasn't practical.

That's just my two cents about that example. Feel free to carry on :)