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Originally Posted by NJBlackBerry
It also has to do with "we want the cheapest phone with the best service at minimal cost". I was in Asia a few weeks ago. Went to an electronics mall. Saw literally hundreds of different phones - 3G, advanced MP3, BT everything. $300-$600. No way the "average" Joe (or family) is paying that for a phone. They want the cheapest one on the family plan with My Faves or whatever. Don't just blame the networks or manufacturers. They are building what the customers want.
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The phones are so expensive because they are not subsidized by carriers. In most part of the world, GSM phones are sold independent of the carrier service. You buy the phone you like in some store, then you go out and pick a carrier. Since the carriers are not burdened with part of the hardware cost, their plans tend to be cheaper.
Because phones are not tied to carriers, phone manufacturers have total freedom to sell whatever product they have. This phenomenon alone makes it possible for them to launch high-end products cheaply and quickly, because they don't have to design & manufacture different versions of the same phone for different providers.
But I guess making payments is an American way of life. We like paying in small installments, even though it would cost us more in total.