Earlier quoted context omitted.
I think the real issue is that US customers (at least) have been conditioned to think of a smart phone as something that costs between $0 and $300 due to the common use of contracts and subsidies. Even if a carrier offers a non-contract plan, they are often not that much better as far as price (with some exceptions like TMobile and some MVNOs), so they balk at paying $650-850 for a handset. That was one of the things…
Yep, no one is going to want to pay $600+ for a phone(in the US). TBH, over $200 for a phone on contract is really high as well.
When the value of the phone is $600 and the value of the contract is $2400, $200 is really high.