Doesn't mean you have to have the latest and shiniest iOS devices (heck, second hand ones might still be perfectly OK), though, presumably you want a couple of iOS 7 devices and perhaps a couple of one or two iOS revisions back. In any case Android in its various incarnations is the bigger beast right now. All in all buying test hardware adds up to a couple thousand bucks, I'd imagine? You're probably spending more on the plans over time anyway, so it makes sense to buy devices upfront let depreciation work its magic and save money on the contract?
FWIW I also don't fully see how liquidity is a bad thing when you're still trying to get product to market. As of right now I expect your revenue is right about zero (not launched yet) and you don't yet, presumably, know how long its going to take before it receives any uptake that translates into a worthwhile revenue stream. -- You've got to survive in the meantime, and presumably have other mouths to feed.
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