A $700 smart phone is, too. Here in .us, a lot of the price is buried in your 2-year contract, so people see it as a $200 smart phone.
My phone is getting old now, and I was thinking about replacing it. I'm on an older cell phone plan that [right now] is cheap considering what I get. I found out that if I want a new phone under contract I have to go to one of the "new" plans, and if I want to keep the same service level I have now, is $50 a month more. Add to that I still have to pay $200 upfront for the phone. The terms are all 24 months now, so that means that $700 phone actually costs $1400.
When my phone finally goes I'll just buy one outright.