Sure there are decent smart phones that only costs 100 euros, but I was referring to the fact that in 1996 communicator was deemed too expensive for consumer market, but now top of the line iphones sell huge volumes.
Now the internet, and increasingly mobile internet is becoming the default way of accessing almost any service, so having a phone that works for you is something that people are ready to pay for. You end up using it so much, that people feel like it's not a waste of money.