Not true. The situation you describe is way more complex than that. When you buy an I-Phone( or any durable good for that matter ) you pay for management, advertising, materials, engineering, transportation, packaging, design, testing and labor. If you buy it at a place like Sprint you are also paying for overhead. So what you are really saying is the labor component that I pay may cost twice as much but overall, the retail price increase will marginal based on the amount labor represents of the retail price which is typicality less that 10%.
He didn’t say it was all labor. Moving means fewer fees directly and costs to comply with all the fascist rules.