cell phones: what is too expensive

When the iphone came out this summer, droves of people went to purchase it for $499 and $599 respectively. I know where you can get a good pc laptop for $599 . I paid $50 for my razor and it seems to do the job . I had a smart phone once that did everything but I foud that I was doing nothing with it and paying through the nose for it. The mark-up must be incredible on these phones and I cannot believe that people are willing to pay the price. This just rienforces my belief that many Americans make too much money.