Why does my iPhone only cost a penny?

Went into the Verizon store and I told them I needed a replacement phone because my last one had broke and I wanted an iPhone 5 in white. They said it would be no problem and I'd have to come in the day after to get it since they didn't have any in white. I asked how much it would cost and they said just a penny? Why is it only a penny? That seems so shady? On the website an iPhone 5 is like 99 dollars, so why are they only making me pay a penny? Is this real for real or is there some kind of shady hidden payment?!

Go to a different store, they're probably trying to rip you off.
Or their store doesn't have a deal with Apple.

Hope that helped.

You were probably up for a new phone. My mom and dads costed the same for a IPhone six

You need to sign on for another 2 yrs (it's not a scam)

In the US the majority of phone costs are subsidized by the carrier who requires you to sign a service contract for $1200 or more to get that 1 cent phone, you actually are paying off the $500 or so cost over 2 years.