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How do people manage to always have the latest phone? : Android

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Many times I read on this subreddit things like this, "I used to have the s4, then I got the HTC one and now I settled with the Note 2". How do people do this? Are they buying off Craigslist etc or are they buying from the carrier for full price? Am I missing something because it seems really expensive to constantly have the best phone. Any tricks to to get the latest phones quicker (than the standard 2 years contract renewal)

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