At present, it costs minimally $650 (assuming we are talking about the current model of the iPhone) to buy an unlocked iPhone. But to buy a the equivalent iPhone under contract, it costs $200. But look at this with the early termination fee considered: Verizon: $200 + 350 (ETF) = $550 Sprint: $200 + $350 (ETF)= $550 AT&T: $200 + $325 (ETF) = $525 So, why would ANYONE buy the unlocked variant instead of just buying a locked phone and then canceling the contract immediately and saving at least $100! AT&T will unlock your phone after your contract expires, and I would assume that with LTE becoming the standard platform, other carriers may follow suit with the new iPhone. Did someone at Apple or the carriers not do the math here?