In Japan, it is common practice for customers to sign a two-year contract with a mobile phone company when purchasing a new iPhone.
Previously, the fee for two years entitled the purchaser to ownership of the iPhone. However, the current situation differs somewhat. Once the two-year fee has been paid, the next step is to return the iPhone to the telecommunications company and settle the remaining loan. You have the option of continuing to use it as it is, but many people choose to return the iPhone to the telecommunications company because the remaining loan and telecommunications fees can be quite expensive.
Telecommunications companies set a high resale price for the device, which allows purchasers to use the iPhone for two years at around 10% of the original price. This seems like a good way to go, particularly for a product that is replaced every few years. However, I wonder if there might be a better way. It seems like the options are not always readily apparent.