At the same time, when I&#x27;m buying a new phone (unlocked and up front) I don&#x27;t go for the $100 phones but I do take price into account.  Not that it does much for OEMs selling at those lower margins but it&#x27;s a large part of why I buy $350-450 phones like the Nexus 5 or Moto X instead of the $650+ iPhone.<p>I think you nailed it on the installment plans though.  Splitting up the cost and spreading it out makes a few hundred dollars less obvious (psychologically at least).