Yep. I think AT&T took the "these are just for disciples" to heart and figured those would pay more than the usual mark up. Plus people too poor to pay up front (or don't understand the cost over time) have no other option than AT&T in the US. Well played AT&T!This is the first time I have ever seen a unlocked phone cheaper than a locked one.That is just unheard of. But then considering its Microsoft and AT&T I can believe it.