[trekker7]

$199 instead of $399 might be a valid argument, if you were poor and just wanted a phone to talk to people and didn't care about lock-in.

[jrockway]

But cheap cell phones that just let you talk to people cost almost nothing now. They are literally $10 unsubsidized.

The $400 phones are for people that can afford to spend $400 on a phone.