Why are mobile contracts so much more expensive in the US compared to Europe?

College Life
1

So i was just comparing mobile contract costs at all the American carriers compared to the costs in my home country in Europe.

So in my home country i can get a 24 month contract for an Iphone 7 plus 128gb for $59 a month including 7gb data and unlimited text messages and calls.
The same deal in the US would cost about $110-$130 a month. What’s the reason behind the expensive price in the US?

2

If I’m guessing it’s because outside of the USA you have to buy the phone separately. For example: in India you have to buy the phone ($800) and then pay $50 a month. In the US the price you pay per month generally includes the payment on the phone

3

There may be some relationship to population density, since the US has lower population density than most European countries (though Russia, Finland, Sweden, and Norway have lower population densities than the US).