says who? We have not defined how much the subsidy is. It could be a $1100 phone, with $100 subsidy.
EDIT: more realistically: It could be a $1600 phone, with a $600 sub (same as current sub). The phones (base model) are USD 1k in Germany, so i mean, it is not unlikely that it could be $1600 unsubsidised if it was "ethically" produced.
this still does not change that fact that improving working conditions and wages will increase prices for the consumer.
Not by hundreds or thousands of dollars as everyone is suggesting. Even a meager $20 "ethics tax" on top of each iPhone sold, assuming Apple sells 30 million units annually, would bring in an additional $600,000,000. And that's just one product from Apple alone, not even counting their other products and other companies who also use Foxconn and could chip in similarly as well.
Also keep in mind that the cost of living in China is much lower than in the US, hence wages wouldn't need to soar to something like $50/hr. to be considered at least decent.