Apple iPhone

[Kitsune]

Originally Posted by wolf

I suspect it has to do with the actual cost to the vendor of the phone that you're being given, either for free or for a significant discount.

That'd be it. People are much more willing to sign a two year contract and pay $50 for a phone rather than no contract and dish out $400+ for the same set. Cellphones are considered disposable, anyway, and people expect to get a new one every two years or so.