Okay, just checking if I get this right.

In Europe, we can get a cell phone cheap with an expensive subscription, or you can get the same cell phone mid-priced with a cheap subscription. With the cheapest subscriptions, they don't offer any "subsides" at all. Basically, you can get a $400 phone for $1 but then you have a subscription that is about $400 more expensive a year, than the optimal subscription.

Are you telling me that US carriers will give you the $400 phones "subsidized" at the same price regardless of what subscription you have? That there are no cheaper options?

Sounds like capitalism isn't working, if noone offers a barebone subscription with lower costs and lower monthly fees.