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Why is the Google Nexus 4 so much more expensive on contract?

Why is the Google Nexus 4 so much more expensive on contract?
For example: £239/£279 at Google Play.
BUT... £179.99 @ Carphone Warehouse, with a 24 * £26 (£624) contract!

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matt101101 / MOD  Jan. 31, 2013 at 17:20

Because Google are subsidising the ones they're selling, the contract phones don't have this Google subsidy and therefore cost more.

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