Those in non subsidies country do not want the iPhone because it is not competitive. At market value the iPhone is uncompetitive.So? What does iPhone pricing have to do with anything? So what if Apple enjoys higher market share in countries with high subsidies like US and Japan? That's simply a by-product of its business model. They target the segment of the market that appreciates nice things and a great user experience, and who appreciates these factors enough to be willing to spend to get it.
So what if I paid less or more for my iPhone? (For the record, I am using a 5s, and will upgrade the 6s next year, though I have not yet decided which model to get). I simply prefer the iPhone more, and at any rate, would rather pay a bit more for a device I enjoy to use, then spend less on a device which I won't enjoy using. Give me a Note4 for free and I still won't use it over my 5s, not least because it would break continuity with my other Apple products (inability to link iMessage to my phone number, no airplay, lack of access to iCloud, just to name a few).
If this really irritates you so much, then I suggest that you put your money where your mouth is. There are also tons of Android users who like to constantly laugh and deride iPhone users for reasons too numerous and ludicrous to list here. Did it ever strike you to speak out against them?
Iphone do well in subsidized country because it is dirt cheap. At $199 any phone with mediocre specs like iphone will be snapped up.
Apple can have this high profit because it cahoots with the telcos to screw the consumers (aka you) through hidden cost built into phone contract. They made non contract phone plan so unattractive that you have no choice but to buy on contract.