iPhone 5 the $200 phone with a $650 price tag.
http://www.isuppli.com/Teardowns/News/Pages/iPhone5-Carries-$199-BOM-Virtual-Teardown-Reveals.aspx
It's called subsidies.
Is it just me or does anyone feel that smartphones are massively overpriced?
It's called subsidies. Why make efforts to compete on price when it's going to be $199 anyways?