Yeah, phones usually are significantly subsidized, but I thought I'd seen something (possibly erroneous) about the
iPhone not being subsidized -- it stuck in my memory precisely
because it was unusual.
Generally those contracts
can be canceled, but you have to pay a cancellation fee/penalty, and I
think you have to repay any subsidies (there I could be
totally wrong, as I haven't fully read one of those contracts in a really long time
)