That’s what I thought and did this for years. However, the major carriers do offer promotions and incentives that make the phones cheaper, sometimes significantly. e.g. of recent deal from major US carriers: iPhone 16 deal for $16/month for 36 months ($576 total) versus Apple store $699.
Right but they're locking you into a contract plan that's much more expensive than you would get with BYOD. They still get the money.
Right, but what does the plan cost? If it’s more expensive than other providers and you are locked in for 36 months, that’s where they make their money.