Most people purchase an iPhone for $199 (with a two year contract). While that might seem expensive, the product yields enormous utility if used on a daily basis (as most people do).
Let's say you are the type of user that upgrades your phone every two years. If so, then that iPhone will only cost you 27 cents per day. Considering how much people use their iPhones, not just for making phone calls but for running apps, checking email, playing games, finding restaurants, getting directions, etc., that 27 cents a day is an absolute bargain. Even when you consider your monthly cell and data charges.
iPhones in Europe/Asia, including Russia, are not subsidized by the phone carrier. That means they pay Full Price for the phones.
In China, that same $199 US-carrier subsidized iPhone is $860 USD.
In Russia, they are likely priced in Rubles, meaning the US Dollar equivalent has fallen by a bunch in recent weeks.
A use two year old iPhone will sell for $200.00 easy enough, so they are free if you look at it that way, in fact my wife and daughter got $200.00 trade in from AT&T so phone 6 was free.