But how many people are buying phones retail?
I still think these retail prices are collusion to force people onto contracts - in exchange for guaranteed volume from the carriers, the OEM's artificially inflate retail prices to funnel people to subsidized contracts.
I'm not convinced carriers are paying $350 subsidy for these phones, and even then that puts us only into the $550 range. I forget which phone it was a few years ago, but a leaked image showed @$400 wholesale (that would be the price BB, VZW and AT&T pay) to Best Buy for a phone retailing for at least $650. And that $400 price jives a lot better with OEM margins.