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$199/299 price = upgrade subsidized price
$299/399 price = nonsubsidized price but still signing 2 year contract
$599/699 price = contract free price...at some point.

It's actually 399/499, and it is slightly subsidized, as apple makes around 500-600 for each iPhone.
 
It's actually 399/499, and it is slightly subsidized, as apple makes around 500-600 for each iPhone.

Just one quick question, if $399-$499 is still subsidized, then why did my receipt for the lower $299 price only show a $200 discount for 2 year contract? Which it specifically said.

Wouldn't the discount be higher than $200 then? And if I bought it at $499, I bet it would not list any subsidized discount on the receipt for the 2 years.

Not saying the phone doesn't cost more than $499, it's just ATT themselves don't make that clear. And the no-commit price seems like a mark up to get more money out of you. Especially in case people plan to unlock it and never buy service from them, so they still at least get something out of it, unlike before.
 
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