Pretty good deal there. Target is selling phones for $50 such as Galaxy-S on various networks.
- gtvr : Actually, yes - smart phones DO costs a lot to make... The $300~500 price is what it takes to pack all that tech into such a tiny device. Look at a typical $500 notebook. A smart phone does a bit more in a much much smaller package. WAN, WIFI, Phone, Computer, Video Camera, picture camera, media player, etc.
Typical MP3 players like the iPod don't have WAN or WiFI or phone electronics. iPod Touch is expensive since its basically an iPhone without the phone. Some like the iPod Touch does include WiFi so they can sell you APPs... they go for $200~400 without a contract. By Apple selling apps for the Touch, they can reduce the price a bit. An iPhone4 goes for $200~300 with a contract because the phone company (att and Verizon) are subsidizing the cost of the phone to get their service.
Go to online stores that sells unlocked phones. Until I got my recent Galaxy S, the last 2-3 phones I bought were unlocked phones, I paid $225 for a dumb SONY phone a few years ago.
The unlocked international iPhone 4 goes for $1000! Hmmm.. that $200~300 version looks much better. A Galaxy S phone is also, $500~800 - unlocked. I got mine last year for $200 - nowadays, its as low as $50 with a 2yr contract. Everyone in the USA is a 2yr deal.