The last phone I bought was on a two year contract. It ends in 3 months, after which I will own it outright and only pay for the airtime contract. Will I be getting a new phone? No chance! It's still one of the best phones on the market despite numerous revisions since its release and it does everything I need it to do and more.
Phone manufacturers have got to that stage where they're just adding numbers and letters on existing models to try and make you think you're getting something special.