Actually the phone is even more ludicrously expensive in China, one of the reasons Apple shares dived on release day was due to Apples crazy pricing, with the 5c costing over $700.....
In China you can get top end quad core android phones for $300-400, just like the 32GB xiaomi Mi2S I own![]()
Right, as most know, I have lived in China for several years. Consumer electronics, for similar products, are generally more expensive in China. Apple products are even more noticeable. About the lowest markup in China, over US prices is the current Macbook air. I was looking at one this week. For a product that sells for 1K in the US, in China it is over 1.2K.
When Chinese go to the US they, typically, go shopping. Not just because shopping seems to be "their thing" (an strangely consumerist culture) but because goods are so much less expensive in the US, even goods made in China ate significantly less expensive in the US. . . for similar quality (and name brand watches are significantly cheaper in the US, by at least 40%).
Back to Apple; I was very interested in the 5c following the death of my iPhone 3 and have been considering a new iPhone for several months. However, to tide myself over I purchased a Runbo S09 Industrial phone for about $375 USD. Its main feature is durrability (I should have done th eextra and gotten the "worksite radio" model with the radio built in so it would also work on the ham 440 band).

I was really waiting for the 5c. My expectation was that Apple was going to try to compete with Android here in China; and a large part of the failure to compete with Android has been the price. I, and many others were expecting to see a price in the $300 range; however, in China the price is closer to $700 USD. For that price I will keep my current phone and watch the used market when I am in the US.
I see two problems for Apple. The first is the price, the investors are very concerned with keeping the margins high; however, that really only worked for Apple when they were creating (ok, marketing) new product categories, smartphones and tablets are a commodity now. The second is the failure to provide a roadmap. Large purchasers are hesitant to purchase when there is no clear indication of where the product line is going.
Apple doesn't need a return to the Pepsi Guy days. However, Apple does need to start thinking of itself as a mature company with mature product lines and be less dependent on showmanship and show more understanding of its products positioning within a category. Apple is still a premium product and its pricing can reflect that; however, they are a mass market seller and they are loosing the mass market.