Camp 2: You've pre-ordered the iPhone 5 and are selling your 4S to cover the cost.
The second strategy isn't as financially reckless as it sounds, as long as you can get top dollar for your 4S.
The first step is to use this handy tool to determine your upgrade eligibility. If you aren't eligible for upgrade pricing, you'll have to pay the full $649 price for the 16GB iPhone 5.
But if you can sell your 4S for $400-$450, paying $200-$250 out of pocket may be worth it for owning a new iPhone 5 sooner. That's a big "if" though.
When the iPhone 5 was officially unveiled earlier this week, prices for the iPhone 4S at popular online buying sites such as Gazelle and NextWorth dropped down to the $200-$275 range.