IPhone doesn't have physical software either numbnuts
Foolish response.
Retailers get a cut of iPhone revenue and they're also able to sell an assortment of high margin accessories at retail. Cases, chargers, cables, car mounts, car chargers, pop sockets plus other products like Apple Watches, airpods, e.t.c.
And the major retailers that carry iPhone are primarily carriers, who also want you to sign up for their services.