I'm trying to understand why I would even consider paying the true price for the new iPhone 4S, which is $450 more than what you pay when agreeing to a new two-year contract, since the carrier subsidizes it. I understand that the carrier recoups their "loss" over the two years, but I don't know of any other options, here in the U.S., that would make it financially better for me to buy the "unlocked" phone. As far as I know, I can't use the unlocked phone with a prepaid or PayGo plan . Or can I? Answers that involve buying it to sell overseas are irrelevant to me. I'm only trying to understand why someone in the US, who is going to use the phone himself, on a US carrier, would pay the higher price. Thanks to anyone who can help me understand this.