You can buy a sim-free iPhone 6s directly from Apple, I just checked, but you have to pay the total for the phone - which is around $650.00 - because there is no carrier subsidy in place.
So a carrier subsidizes some of the iPhone's cost as a business model, a way to gain customers?
Thanks.
EDIT
Found a
recode article from Dec. 30, 2015 which says that:
"...consumers in the U.S. have generally bought [cellphones] in the same way. They pay a fraction of the true cost of the phone, with carriers subsidizing the difference and making it back on the monthly service fees they charge....carriers have been gradually shifting away from that approach, separating out the cost of the device and making consumers pay for it upfront or in monthly installments...While the shift changes the way consumers buy their phones and cellphone service, overall pricing has remained roughly similar."
So this would suggest that carriers were charging a higher fee with contracts to recoup their so-called subsidy, no?
Thanks for all the instructive replies. Really appreciate it.