eBay Daily Deal. Ebay (yapper wireless, 98% positive feedback) has a Preowned Unlocked iPhone 5 64GB Sale in Black or white for $269.95 with Free Shipping. Tax in NH. 60 day warranty. 8/10 cosmetic condition.

Big price drop after the iPhone 6 launch.

Save money read: How to Find the Best No Contract Smartphone Plan

Consider purchasing an unlocked cell phone if you are on AT&T or T-Mobile and want a new Smartphone without a contract. Unlocked Smartphones allow you to subscribe to low cost carriers mentioned below and function internationally, so you can use the same phone abroad.

Important Information:

• Unlocked GSM cellphones work on AT&T and T-Mobile in the USA and with 3rd parties like Straight Talk

About Apple iPhone 5:

The Apple iPhone 5 comes with a new faster Apple A6 processor (ironically made by Samsung) and runs on iOS 6. It has a a longer, larger 4" Retina display with a fingerprint-resistant oleophobic coating. Cnet calls the redesign "sharp, slim, and feather-light."

Apple iOS 6 includes a smarter Siri voice interface and Passbook, a digital wallet app for storing items such as gift cards, boarding passes and tickets.

However the iPhone 5's new improved Lightning connector makes older docks and chargers obsolete. On the plus side, the new connector is a bit smaller, a little more rugged and easier to use than the previous one.

Reviews:
CNet gives the Apple iPhone 5 a 4 out of 5 rating.

Apple iPhone 5 Specifications:

• 8Mpixel iSight rear camera, 1.2Mpixel front-facing camera
• Apple A6 dual-core 1.30GHz processor
• Apple iOS 6
• 4" 1136x640 resolution touchscreen
• Bluetooth 4.0
• 802.11a/b/g/n Wi-Fi
• 8 hr talk time, 9.4days standby

Low Cost Service Plan with Unlimited Talk, Text, and Data

T-Mobile offers a web exclusive pre-paid plan great for unlocked phones:

• $30/mo for Unlimited Web & Text with 100 Minutes Talk

Straight Talk, a prepaid carrier that is owned by Tracfone and Wal-mart, sells micro SIM cards for the that cost $14.99 + Free Shipping.  You can pop these into any AT&T-compatible, T-Mobile-compatible, or unlocked GSM phone.

• $45 a month buys you unlimited talk, text and data with no contract or credit check.