If you move quickly and don't mind older technology, you can buy an unlocked iPhone 5 from Apple for a lot less than its asking price.
As AppleInsider points out, Apple is currently selling "Certified Pre-Owned" iPhone 5 models on eBay. The 16 GB version, in either white or black, is selling for $449, which is $200 off the original price. That's also $100 cheaper than the current iPhone 5c, which has nearly identical tech specs.
Although the full price for an unlocked phone is more expensive than what you'd get with a two-year contract, you could take the phone to AT&T or T-Mobile and get cheaper monthly service. (Check out our wireless plan pricing guide; paying full price gets you the same discount as AT&T's Next and T-Mobile's Jump plans, but without the additional monthly phone cost.)
Apple was also selling the 32 GB iPhone 5 for $479 and the 64 GB iPhone 5 for $499, but those versions sold out rather quickly.