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I may be wrong but I doubt $100 up front is the big barrier to entry for feature phone users. I'd guess it's more the $2000 over 2 years in data fees etc that keeps them from switching.
You'd be surprised what a difference $100 makes. Most people don't think like you and me, where price is only one of many factors in buying a phone. Instead they think "Oooh, $100 phone, that must be ok!"
And then as tech nerds, we all collectively shake our heads...