Like he said, If you buy it outright, it’s $650. After a year, you can try to sell it, and get a new one. What will someone be willing to pay for a used iPhone? If it’s more than $266, than it makes sense to buy and resell. For a lot of people though, they don’t want the hassle of having to sell their previously used…

Give it to the Chinese for 24 hours and they’ll have a copy out in a week. Of course, it may fall apart and put out more pollution than it collects, but it will look identical and be in Wal-Mart in time for Christmas shopping.