David Pogue writes,
When you buy a cellphone — an iPhone or Android phone, let’s say — you pay $200. Now, the real price for that sophisticated piece of electronics is around $600.Because of the subsidies, we actually don't know what the real price of that piece of electronics is. There's a very good chance the subsidies themselves are there to increase the price out the door of that piece of electronics.
In a no subsidy free market, who knows, while MSRP of a cellphone might be $600, the real price might turn out to be $450 or so.