It won't cost me a dime because I'm not getting it. Just got the 4 back in December and don't have $850+ laying around to pay for early termination and actually buying the phone.
It's not "And", it's "Or". You can pay the ETF and then get the new phone subsidized, or you can pay full price for the new phone and use it on your existing contract (no ETF).
Wrong. Go check apple.com/store for the unlocked retail price on an ATT phone. You are quoting the subsidized price that the carrier sets. Apple still gets their full price.
WTF? Nothing I said was wrong; nothing was said about the unlocked iPhones.
With the first iPhone, you had no choice but to pay the unsubsidized price (it wasn't unlocked). The poster I quoted said that the subsidized price was $250/$350. All subsequent releases have been priced at $199/$299. Of course I'm talking about the subsidized price.