I can tell everyone from my experience in inventory control that the phones cost pretty close to what full retail is listed at. Whenever I work within the inventory system I can see specifically what the last cost of an item was, as well as the average cost over time. The widest increase from cost to full retail I've ever seen was just under $20.

Anyone who's ever worked in any kind of inventory control knows full well that there isn't an "inflate cost" button to press in inventory management software. Inflating the cost of inventory costs you more in taxes and return on investment figures at the end of the year.

The full retail price is pretty much cost.

And in case there's any question, I am all for purchasing phones from the manufacturer instead of the carrier. However, consumers are going to have to get over the fact that the manufacturer isn't going to pay for a portion of your phone. Until they're able to do that, I don't see much changing.