In the US, if you want to own the new Apple iPhone 5, the entry-level 16GB version of the smartphone will cost you $649, which is the full retail price of the device without any carrier contract. But if you don’t want to make such an expensive deal, you can approach carriers, who will pay as much as $450 while leaving the rest $199 to you.

Yes, for just $199, you can be the owner of an iPhone 5, provided you have signed a two-year contract with the respective carrier. Ever wondered why and how the carrier can do that for you? Obviously, they know how to make their money back from you, the customer.

Mashable has posted an infographic, created by content marketing firm Avalaunch Media, that breaks down all the iPhone 5-related expenses a customer will likely make during the two-year contract with the carrier.

As per the infographic, the voice and data plan alone will cost you at least $1,440 over the next couple of years. And as Mashable pointed out, “that’s for the absolute rock-bottom plan on AT&T, the cheapest iPhone carrier in the U.S., with pay-as-you-go texting.”

In addition, there are other expenses related to cases, car chargers, stereo docks, armbands, the new Lightning adapters and apps. On the whole, the total minimum cost stands at a little over $1,800, which is quite a conservative estimate.

Have a look at the infographic below. Your thoughts are invited in the comments section below.


Infographic courtesy of Avalaunch Media