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Ok, that is a loaded question, so I'll answer it in sections:
The original list price of a Sony Ericsson W580i is $600 (yeah, I know, a lot)
The current selling price is somewhere between $300 and $260 depending on where you go.
The current reseller (cellphone company) list price is $250 (much better, right?)
That being said, what companies like AT&T like to do is sell them for MUCH less. They offer steep discounts if you purchase it with a contract from them (usually 2-year). That way the price that you pay up front is much less and you are more likely to buy it from them. Then they end up earning all that money back that they originally took from the price through your monthly payments. This way they get their money and you get your phone for "cheaper"(ish). The price with a contract from them is $100 (a full $150 off of their list price). Then on top of that right now they are offering a $50 mail in rebait from their website so if you buy it now after the mail in rebate you get a $600 phone for $50. Pretty good deal. Of course, that doesn't include the contract price but you get the idea.
Bottom line. You get online now. You pay $100. You choose and pay for plan. They send you phone and instructions/form for mail-in rebate. You follow instructions/mail in form. You get $50 back. You are happy. They are happy. Yay happy!
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