Buying an iphone off at&t website?

Why the heck is it so cheap? It says it's only charging me 1.50.It also says "60.00 due monthly" but it plainly says only 1.50 is due today? Wtf… I got the white iphone 4 with the basics, nothing fancy, no insurance. Was it this cheap with anyone else?

I'm an iOS Technical Advisor for Apple.

So, this is how the whole carrier thing works.

We make the phones, carriers then by the phones from us and put them for sale in their store and on their websites. Typically, they sell the phones for less than what they paid for it, and they do this because they can make that money back since you are going to be sending them money every week. Right now, almost all carriers are sellinf the iPhone 4 for around 99 cents. The $1.50 is what they are selling the phone to you for, the $60 a month is what they charge you for the service. It is that cheap because 4 other iPhones have came out since the 4 was released.