Would You Pay $850 for an iPhone if Carrier Subsidies Disappeared?
techland.time.com
techland.time.com
But I think aes256's point is valid. That iPhone you buy with a carrier subsidy does not cost $199.
In a fully-transparent world, you'd be able to bring your own phone and get a reduced monthly bill from your mobile carrier. Or you could buy a subsidized phone and pay more per month.
In a fully-transparent world, of course, the mobile carrier becomes commoditized. They hate that.
It can't come soon enough for me, as a customer, however.
You are paying $850 for your top of the line iPhone, you just don't realise it because it's in the form of $40+ monthly instalments...
Check "mindstepris" (24 month contracts) at: http://www.telenor.dk/privat/mobil/mobil/iphone/