* Paying full price for your handset, that is.
T-Mobile is the only major US carrier I'm aware of to offer this, (though it's kinda buried on their site): http://www.t-mobile.com/templates/generic.aspx?PAsset=Pro_Pr...
So, why not take the free phone that comes with the contract anyway?
Except on T-Mobile, whether you need it or not, take the free phone. Then sell it for more then it's upgrade price (people not eligible for upgrades will be happy to pay $100 or more for a phone if they need it, even one you got for free, because its cheaper than what VZW/ATT will charge them).
With Android, this option is also available in the form of the Nexus series... you get Google hardware, T-Mobile, and you can get updates. However, you can also get hundreds of other phones across different carriers and manufacturers and also varying upgrade options.
Stick with the single company option if you don´t want to get ¨screwed¨ as it´s available too.
If one maker produces a crappy Android phones, all Android phones are bad?
It is a disadvantage that there ARE bad Android phones, but there are also good ones. You probably have to invest a little bit more research then when you just buy the latest iPhone.
Edit: Thanks for the responses about being able to go to BB and get just the phone at the unsubsidized price. This was the answer I was looking for as it wasn't clear to me that this was an option and I was just more confused that Google wasn't selling it as an option for devs in their marketplace.
Introducing the Nexus S. Starting at $199.99. Only at Best Buy®. Also available without a 2-year contract for $529.99
http://www.bestbuy.com/site/Google+-+Nexus+S+Mobile+Phone+-+...
The site actually breaks though if I try to proceed further than this, so who knows.
I'm not sure which price you are referring to as "the retail price" here; if you are referring to the $199 subsidized price that comes with signing a two-year contract then by definition any unsubsidized phone will be hundreds of dollars more.
Combined with a Google Voice account it's just awesome!
Google could help things by releasing a umts band 5 version of the Nexus S like they did the Nexus One. The current Nexus S isn't an option where I live.
Edit: thank you for the correction
Band 5 is the more common 850MHz band used by AT&T in the US and Rogers, Telus, and Bell in Canada.
The first Nexus One supported bands 1, 4, and 8. The next one supported bands 1, 4, and the critical 5. The current Nexus S supports bands 1, 4, and 8, and is mostly useless in Canada. And all of us up here would just really, really, really like it if Google would release that band 5 version.
Pretty-please, Google?
Edit: ack - corrected a bit
And what's the status on the official 2.3?
Which doesn't help those of us that actually want to stay with AT&T and still be able to use 3G. (Yes, we do exist).
Can you post a link?