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Read the fine print. It has to be a first time activation, or adding a new line . . . who, in this world, doesn't already have a cell phone?

It's a gimmick to get people to visit Amazon and talk about them.

Basically free advertising.

I would guess the actual number of .01 cent phones actually sold is VERY small.
 
still a good deal for those who qualify. the samsung galaxy s2 is a pretty decent phone, for example.
 
Wirelessly posted (Mozilla/5.0 (iPad; CPU OS 5_0_1 like Mac OS X) AppleWebKit/534.46 (KHTML, like Gecko) Version/5.1 Mobile/9A405 Safari/7534.48.3)

The upgrade fee looks to be a great deal too.
 
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