Why ppl in us get iphones on contract, are they poor to just buy it in $700?

Why ppl in us get iphones on contract, are they poor to just buy it in $700?

Because if you're going to pay for phone service anyway, you might as well sign a contract and get it for a few hundred dollars cheaper.

No, we just feel that paying 700$ for a phone is crazy and rather save 500$ out of that. Would you rather buy an iPhone 5 that cost 700$ or 200$ ?

They are smarter, you still need a contract so why not save a few hundred dollars.
and you can upgrade and get a free phone in 2 years

They don't want to pay full price. With T-Mobile you actually pay full price cuz they don't give you a contract.