The prices you saw are the carrier subsidized prices. The carriers buy the phones from apple and then subsidize the cost, and try to make a profit over the leng

The prices you saw are the carrier subsidized prices. The carriers buy the phones from apple and then subsidize the cost, and try to make a profit over the length of the contract. The presentation was a little bit sloppy, because previous presentations would have footnoted that these were with a new 2 year contract prices, not "we're selling these phones at these prices".