If I'm a US user and don't travel internationally, it doesn't seem to make economic sense to spend $650 for an unlocked phone. Am I missing something?
To get the true cost of an AT&T or Verizon contract, add the cost of 24 months of their monthly rate plans to that $199 subsidized iPhone price.
Compare that to the cost of one of the discounted monthly rate plans over 24 months plus an unsubsidized, full-price $649 iPhone.
In a lot of cases, the AT&T or Verizon two-year contracts work out to be more expensive. And gets worse if you stay with AT&T or Verizon after the contract is up, because their monthly rates don't drop after the obligation for the subsidized phone has been met.