The device costs $249.99 for the 16GB model on AT&T. Samsung is seriously being greedy with this phone. I hope Apple doesn't subsequently follow suit and stay at $199 entry price
Don't you mean AT&T is being greedy? AT&T buys the phones then resells them for whatever they want. Samsung doesn't make more or less money due to subsidiary prices.
They don't sell the iPhone for more on contract with Apple because Apple has the pull to tell them where to price it. If you look at the retail cost that tells you who is being greedy.