Went into the Verizon store and I told them I needed a replacement phone because my last one had broke and I wanted an iPhone 5 in white. They said it would be no problem and I'd have to come in the day after to get it since they didn't have any in white. I asked how much it would cost and they said just a penny? Why is it only a penny? That seems so shady? On the website an iPhone 5 is like 99 dollars, so why are they only making me pay a penny? Is this real for real or is there some kind of shady hidden payment?!

You sign a new 2 year contract. Divide the true cost of the phone by 24 and that's how much extra is applied to your phone bill to pay for the phone. The phone company isn't subsidizing anything. You are paying for it. Otherwise, you wouldn't be hit with an early termination fee if you do terminate early. That early termination fee pays for the phone.

In the US the majority of phone costs are subsidized by the carrier who requires you to sign a service contract for $1200 or more to get that 1 cent phone, you actually are paying off the $500 or so cost over 2 years.

Hello!

Go to a different store, they're probably trying to rip you off.

Or their store doesn't have a deal with Apple.

Hope that helped

:)

You were probably up for a new phone. My mom and dads costed the same for a IPhone six,

you need to sign on for another 2 yrs (it's not a scam)

someone was trying to be nice to you