It might not be the case in the US, but the iPhone is a relatively affordable smart phone on the old continent. Carriers are putting forth major efforts to subsidize it and make it as accessible as they can. An effort, apparently, coerced by Apple.
Here in Switzerland for example, a contract-free iPhone will cost you about a $1000 and you can easily pick one up pretty much free of charge with a $50/month two year contract. That's a subsidy of about a $1000 dollars.
If you were to buy a BlackBerry Bold 9700 on the other hand, they are available contract-free for about $800 but you'll still have to fork over at least $300 even with the same contract, so that's only a $500 subsidy. This also applies to the HTC Magic ($600 subsidy), the Sony Ericson Satio (also $600) and so on and so on...
The French, which experience quite a similar situation, had the French Competition Authority investigate the issue, and they report that Apple is able to do this using some very interesting, however illegal practices.
They report that Apple is coercing carriers into subsidizing the iPhone at least 20% more than their next subsidized smart phone. While the practice is against competition laws, it would require one of the iPhone's provider competitors to file an official request for them to pursue their investigations, which they are now awaiting.
If this goes through, this could mean a major price hike for the next generations of iPhones and maybe some trouble for Apple.
