It's a bit different. Flagship models typically have an inflated sticker price in the $1000 range, and a long-term contract is only one component (and a rather

It's a bit different. Flagship models typically have an inflated sticker price in the $1000 range, and a long-term contract is only one component (and a rather insignificant one) of the overall discount. Manufacturers and retailers often add arbitrary discounts and rebates on top of it, so if you're really lucky, you can get a brand new flagship phone for free. But the next person will have to pay $700 for it, even with the same contract, while the store across the street sells it for $400 because they're getting a big rebate from the carrier this week. And most of the above are straightforward discounts and rebates, not something that is sneaked into the monthly plan like in the U.S. The price of the phone after the discount is divided by 24 or 30 and tacked onto the phone bill as a separate line item. You can pay it off anytime you want. The government is trying to regulate the industry into making the pricing structure more transparent to customers, but the general consensus is that the government is failing.