Why does iPhone5 cost £78 in Walmart in USA but £500+ in UK?

Why is it that there is little demand in the USA for iPhone5 that they can discount it at Walmart yet in the UK and elsewhere we pay £500+ if we want one?
If Americans were paying the same price as the Uk then that would be $808 for the same mobile!
http://www.zerohedge.com/news/2012-12-14/there-go-apples-margins-iphone-5-sell-w al-mart-third-original-price

Well, the fact is that the Walmart sale price is actually a subsidized price. Meaning that instead of "pay as you go plans" the customers are forced into a 2 year agreement with a service provider, hence the provider making their money back in mostly Data Charges. What I mean by "making their money back" is that the service providing company (Verizon, AT&T or Sprint) buys the iPhones from Apple in full amount (or in bulk) with agreements and contracts between them and Apple. An unlocked iPhone in the U.S. is still $650 for 16GB. But even after that fact, it seems that everyone else still pays more than the U.S. The U.K. pays ~$200 more than U.S. customers for an unlocked iPhone. Or ~£127 more than U.S. customers.

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