Technology News: iPhone: Rubbing Users Raw With Handcuffed Devices

On the plus side, the U.S. system gives Americans super-cheap phones. Contracts help stabilize carrier revenue; that, in turn, helps keep monthly service prices cheap. On the downside, U.S. cell phones are not as feature-rich as phones in other parts of the world, says Muzib Khan, vice president of management and engineering for phone maker Samsung Latest News about Samsung. To keep costs low, manufacturers tend to "build to the lowest common denominator" for the U.S. market. That's why there isn't much variety here, he says. To blur the lack of features on U.S. devices, carriers tout ring tones, face plates and slim design -- "things that one could say probably aren't very useful," Kahn says. Because U.S. consumers pay so little for their phones, Khan says, they aren't as "motivated" to learn how to use them properly. As a result, he says, they don't get all the benefits. "It's an endless loop," Samsung's engineering chief says. "Until some changes are made, (U.S. consumers) will be in that loop forever."

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