everyone has different uses for each product. You're saying $650 is ludicrous, yet paying $199 for the device and being locked into a contract at $100/month for 2 years is not???
The price on these phones has not changed. The carriers simply are footing the bill in advance bc they make it up and then some from the 2 year contract. The device is not really yours bc you are locked into a contract for 2 years....moreso like a lease to own.
I'm not sure why everyone is acting like $650 is crazy money when you are paying tons more over the life of the contract.
i'll share with you what happened with me:
My wife and I both had iPhone 3GS and upgraded to the iPhone 4. We had the cheapest family plan at $60, unlimited family text at $30, $30 unlimited data per phone=$150+tax=around $175/month. At the time this was the cheapest way to operate an iPhone. Each time our monthly bill came it would never be the exact same price. It would constantly fluctuate in price. I was tired of forking over $170-$175/month for cell phones. and sadly, this was the cheapest route you could go to get an iPhone.
I went ahead and paid the ETF's on both phones and we are both on the $25/month GoPhone with 250 minutes and unlimited text. We are around wifi majority of the time so not having data isn't an issue for us. I get a text when it's time to upload $25 and there are no bs fees or anything added on like when I had a contract. I will never do a contract again. They make prepaid appear to be this bad thing where it's only for people with bad credit....that's not true. But it sure does have the american people fooled into signing these big long contracts and thinking they are getting a steal at buying an iPhone at ONLY $199. $50/month for 2 iPhones cannot be beat.
I will gladly pay $650 for an iPhone then have to mess with contracts.