An unencumbered high-end handset at around $500 is cheaper than the same device at $199 with a contract. I wonder if someone will notice this and offer conventional financing packages like you can get for fridges and TVs.
T-mobile appears to be doing exactly that. You can get a contract with a subsidy, you can get financing on the phone and cheaper monthly service, or you can buy the phone outright and get cheaper monthly service.