it's a classic business move: you don't price based on your cost, you price based on what the market will pay. Since the iPhones with more memory costs more, it

it's a classic business move: you don't price based on your cost, you price based on what the market will pay. Since the iPhones with more memory costs more, it follows that the people who buy it have more and are willing to pay more (they picked the more expensive iPhone after all) - and so you charge more. n.b. I'm not saying I agree with everything AAPL does.