Simple: Because Apple can get people to pay $599 for the iPhone. apple can get people to pay over $1000 for an iphone. those phones that are sold unlocked in

Simple: Because Apple can get people to pay $599 for the iPhone. apple can get people to pay over $1000 for an iphone. those phones that are sold unlocked in other countries that aren't subsidized go for well over $599 on ebay: http://shop.ebay.com/i.html?_nkw=factory+unlocked+iphone+3gs&_sacat=0&_trksid=p3286.m270.l1313&_dmpt=Cell_Phones&_odkw=unlocked+iphone&_osacat=0 http://shop.ebay.com/i.html?_nkw=factory+unlocked+iphone+3gs...