iPhone 5C is shockingly expensive

I am watching CNBC's coverage of the Apple event, and one of their reporters said that the iPhone 5C will be $549 off-contract, which is amazingly expensive. And Techcrunch has just confirmed that, as well.

I've said over the past few months that $349 would be the absolute max price off-contract if they wanted to compete in emerging markets. I can't really understand how this could open up new people to the Apple ecosystem when they are counting on selling this in countries where people make $400 a month. I don't really see this changing the dynamic for Apple in those crucial parts of the world where they need to see growth and compete with Android.