contract fleecing
Which is exactly why the whole "subsidized" phone business works so well. Too many people would rather get fleeced. Note that t-Mobile is not asking people to buy the phone outright, but rather, they'll let you pay it over 24 months, but when those 24 months are up, you've actually payed off the phone and don't have to keep paying for it. In the "subsidized" plans, the provider divides the cost of the phones across 20 months and charge you that price for the duration of your contract, which is usually 24 months, meaning that they are making sure to charge you more than the price of the phone, even if you buy a new phone after your contract is up.
I'm not in the US and would never buy an iPhone outright. Much better to get a contract but make sure the plan and carrier are good.
Which is exactly why the whole "subsidized" phone business works so well. Too many people would rather get fleeced. Note that t-Mobile is not asking people to buy the phone outright, but rather, they'll let you pay it over 24 months, but when those 24 months are up, you've actually payed off the phone and don't have to keep paying for it. In the "subsidized" plans, the provider divides the cost of the phones across 20 months and charge you that price for the duration of your contract, which is usually 24 months, meaning that they are making sure to charge you more than the price of the phone, even if you buy a new phone after your contract is up.