Currently there are two branches in phone contracts: 1) Cheap feature phones (under $200 real cost) with a voice plan but no data plans. 2) Smart phones ($500

Currently there are two branches in phone contracts: 1) Cheap feature phones (under $200 real cost) with a voice plan but no data plans. 2) Smart phones ($500+ real cost) with $30 data plans. Both of those are subsidized by the attached plans so the consumer pays $0 to $200. Where does a low-end smart phone fit into this ecosystem? A $400 real cost phone is already going to be subsidized down to $0 out of pocket. It seems like the only vendor who has any interest in really cheap smart phones is Virgin Mobile, who will sell you an ok Android phone for $200 but with a $25 unlimited data plan (and 300 minutes). I'm not sure if there is really much money to be made chasing this market.