In the UK, all contract phones are subsidised by the contract which is usually 12 months so over the period of the 12 months you pay off the phone - eg. a £50/month contract will get you a "free" £600 Nokia N95. But since the iPhone is locked into a 2 year contract you can consider that in order to own an iPhone you have to shell out the full cost of that two year contract plus the $599 for the 8GB device - you can't own the phone any other way. If the iPhone were available for $599 and without a contract then the cost of the iPhone would be $599, but it's not possible to buy at that price. Only for $2000.

