That is just because the diabolic "subsidy" system in the USA. In other countries, with real competence, most people will not be pushed to buy a high end phone (due to the apparent inexpensiveness and the even if dont get the phone I still have to pay almost the same to the carrier, so
). Instead you can see the real price of each item, and pay according to your needs.
For example, my mother bought a Lumia 520 (about $120 off contract, SIM free
- iPhone 5c, is about $600-), and she only pays the amount of data/voice/text she really uses. She is in a postpaid account, but she can leave anytime freely, and there is not a base or minimum monthly fee. So, as she doesnt use so much data or voice or text, some months she pays like $2 or $3, and an average of $5 or $6. This is the way it should be everywhere. If you use more, you pay more, BUT if you use little, you pay little, or even nothing if you did not use that month.
And by the way, I am talking about a country member of the European Union for more than 25 years, not a developing nation where people's salary is $200 a month.