Why are iPhones so much cheaper in America?

The retail price in america for the iPhone 5 is 199$ iPhone 4s 99$ and iPhone 4 is FREE in New Zealand the new iPhone 5 is 1000$ the iPhone 4s is 899$ and the iPhone 4 is 599$ apparently its because of the locked in service provider but what about unlocked iPhones, It annoys me im wasting 100's of dollars when i could just get an unlocked iPhone from america and the worst thing is the unlocked iPhones where you can put your own sim in are more expensive in New Zealand.

That is NOT the retail price. As always you need to read the fine print, those prices are for a subsidized phones with one of the US carriers and require a two year contract. The "Retail" price for a non-contract (not unlocked) iPhone 5 is $599, $699 and $799. 4s is $499.

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