It's the "no contract" thing that will get difficult, as I'm sure you know. "Cheap" and "off contract" have never gone together with smartphones, sadly. More like "off contract" and "ridiculously overpriced to support the on-contract price."
Off contract iPhones don't support the contracted ones. They simply allow Apple to make nearly as much money per handset. On-contract phones go for $199 at point of sale and then bring in another $800 or so later. Off contract phones sell for $700 to $1100 right off the bat.
Apple gets paid either way. I suppose the situation may be different with other companies, what with their low margins and comparatively low revenues.
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