Off contract the phone is $700. You can usually find it on Amazon for ~$500-600.
There's like a $10/mo discount buying the phone then bringing it to VZ to use. At a $600 difference in price (vs. $99 on contract), you can't make the difference up with a $240 reduction in service cost.
So yeah, technically you're right, it's $99 with a 2 year contract, the problem is that people do know what these devices actually cost. Hell, you can look them up on Amazon and ebay while you're in the store and the sales reps will even help you do it. It's just not always cheaper to roll your own.
The problem with Amazon's phone is that when you go phone shopping you just don't see one in the phone stores. If they can only be bought off contract, your effective price for the phone is still north of $400, at least on Verizon. Not even the latest iPhone or Galaxy <whatever> sells in that price range on contract.
There's like a $10/mo discount buying the phone then bringing it to VZ to use. At a $600 difference in price (vs. $99 on contract), you can't make the difference up with a $240 reduction in service cost.
So yeah, technically you're right, it's $99 with a 2 year contract, the problem is that people do know what these devices actually cost. Hell, you can look them up on Amazon and ebay while you're in the store and the sales reps will even help you do it. It's just not always cheaper to roll your own.
The problem with Amazon's phone is that when you go phone shopping you just don't see one in the phone stores. If they can only be bought off contract, your effective price for the phone is still north of $400, at least on Verizon. Not even the latest iPhone or Galaxy <whatever> sells in that price range on contract.