The real expensive part in the US is the cell plan. Excluding the phone, the mainstream plans are $60+/mo with taxes. If you're paying $720 a year for cell service a $1k phone really isn't that much.
(I would never pay $60/mo but lots of people do)
(I would never pay $60/mo but lots of people do)
A $1k iPhone on it's own would cost ~ $40/mo if you spread it out over 24 months.