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2 Year Contract?

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I went into at&t the other day to go get an iphone 6 64 gb with a 2 year contract for $200 (not including tax).  When i was talking to the employee, he told me that the contract has changed and that i would need to pay the $200 for the contract and the fee to totally pay it off totaling at about $750.  He was also talking about a $49 activation fee on top of that, which would be about $800. This didnt make sense to me if I could just buy an unlocked phone for less.  I am just wondering if maybe there was a communication error between us. Can someone please explain to me how the "new" 2 year contract works.  


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