I want to know if this is possible with the iphone 5?

Basically I want to buy an iPhone 5 without contract but not pay $649, so can I buy the iPhone 5 16gb for $199 with contract then just cancel it, or is it that not that easy? I don't know much about this stuff so if it sounds stupid yea I'm sorry.

If I'm not wrong, that's not possible. As everyone will want to do that, I think you need to have the contract for at least 1 year. If you cancel anything before that, I think they won't let you cancel the plan. By 1 year, you'll probably already have spent more than 649 on the contract so if you want to get the iPhone 16gb, you can't buy the contract then cancel it.

If you cancel you will have to pay either full price for the phone or cancellation fee