To be exact, this particular price is likely slightly subsidized by AT&T because they expect to make money on your airtime use. For a better comparison, you'd have to find an unlocked, unbranded phone which doesn't come with a carrier SIM.

Ahem-- I don't think suicide bombers need to worry much about the fine print.

incredible! I was sure there are some under $50, but $15?

NewEgg sells a motorola for $20, just gotta provide your own SIM :P