The point you're missing is that the paid service is subsidizing the $200 price, much like my useless Good Vibes service subsidizes the $1 price. As both AT&T and Sprint indicate on their websites, the straight-up purchase price is $649.99 for an iPhone 5:
If you don't want to pay the straight-up price, you can subsidize it with a minimum voice and data monthly plan. Then it becomes a bundled package. You cannot separate the phone from the bundle and say that the bundled price is the straight-up price.
For Sprint, their minimum plan (advertised online) is $79.99 a month. So for 2 years, that's a bundle price of $2119.75 for the iPhone 5 and service. If you don't want the bundle price, your only option is to pay $649.99 for the iPhone 5.
Also note that cell phone service is not a requirement. You can use the iPhone as a WiFi iPod and get an inactive SIM so that you can use the phone for 911 calls, to which the carriers must complete all calls even if you have no service.
http://www.att.com/shop/wireless/devices/apple/iphone/5-16gb...
http://shop.sprint.com/mysprint/shop/phone_details.jsp?prodI...
If you don't want to pay the straight-up price, you can subsidize it with a minimum voice and data monthly plan. Then it becomes a bundled package. You cannot separate the phone from the bundle and say that the bundled price is the straight-up price.
For Sprint, their minimum plan (advertised online) is $79.99 a month. So for 2 years, that's a bundle price of $2119.75 for the iPhone 5 and service. If you don't want the bundle price, your only option is to pay $649.99 for the iPhone 5.
Also note that cell phone service is not a requirement. You can use the iPhone as a WiFi iPod and get an inactive SIM so that you can use the phone for 911 calls, to which the carriers must complete all calls even if you have no service.