Good point.
Price masking can include such things as subsidies, outright loans, and trade-in programs. That's why Apple has been encouraging or providing the latter two methods in places without carrier subsidies.
When people use the term "subsidy", they mean all those methods.
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As an aside, there are plenty of charts showing the wholesale price range of phones being sold around the world. Basically it's like:
- ........ 40% over $500
- ....... 35% between $200-$500
- ..... 25% less than $200
The cheapest wholesale price (low end) phones are not the biggest sellers, like many people think, because the hidden phone price is not the important factor.
What's more important, is what people pay directly out of pocket. In that case, yes, it'll most likely be the lower perceived price deals that are the majority... whether that's a unsubsidized $250 Chinese Android phone, or a $200 subsidized iPhone 5S.
All around the world, rich or poor, the magic price limit for most people is ~$250, whether subsidized or not. (I didn't come up with this number, btw; it's a known factor. It's why Ballmer laughed at the idea of the original iPhone selling for $600 in the US, and it's why carriers subsidize phones to be at or below that limit. )