I just went on the Verizon site and compared buying an iPhone with a 2-year contract vs. buying a month-to-month plan. I was under the impression that a 2-year monthly plan would be more expensive because the cost of the phone was baked into your monthly bill to subsidize the phone overall but that doesn't seem to be the case. So am I missing something? How is it $100 per month on Verizon on a 2-year contract when you get the phone for $199 and also $100 per month on a month-to-month contract when you by the phone for $649? Edit: Everyone keeps saying that people buy off-contract to use overseas, but I'm asking why people buy off-contract when staying in the US? I always though monthly plans were much cheaper when you bought the phone off-contract (because you're paying so much for the phone) but it seems that's not the case.