However most phones purchases are directly from the manufacturer, while in some cases phones may be purchased as a contract phones which could be explained as part of a cell phone service contract from a service provider.
A no Contract phones come with many benefits with some attached rules, unlike locking yourself into a (new) two-year plan commitment with your cell phone service provider. At first glance, it may look like the handset will be more expensive than what you’re used to seeing aggressively advertised by wireless carriers; that’s because carriers subsidize the cost of the handset when you commit to a long-term contract and recoup the cost of discounted phones over the course of the plan commitment.
Today most advanced cell phones are called smartphones and come mainly as contract phones and are capable of multimedia access, including Internet and email access in addition to the more standard features found in basic phones.
The differences between prepaid and contract phones, lies with the service providers of each package.
An unlocked phone is a phone that can be used with any other GSM service provider, such as AT&T or T-Mobile. With an unlocked phone, you simply change the SIM cards when you’re ready to swap cell phones companies.