If you happen to ask the average iPhone user out there, what the hell is a subsidy
when it comes to the iPhone, they will not have a clue. The reason being is that for the last 10 years, they have been conditioned to accept the way in which phones have been integrated into the carrier plans.
What the mobile networks will never tell you is that the price of an iPhone is actually between $700 and $900 depending on the model, and the reason you pay considerably less is that the networks want you to get your phone, connect it to a plan and spend. The biggest area where spending will take place is the area of data consumption. The more apps you use, the more you pay per MB downloaded.