4 ms·

I don't see how they could possibly justify their iPhone prices if this were the case (which are respectively $649, $749, and $849)

NathanKP 14y ago
I imagine because iPhone is a smaller device it is more expensive to produce.
- jonknee 14y ago
  The iPod Touch is even smaller and has almost the same hardware (lacking cellular radios). Apple still is able to make a nice profit selling them at $299 ($450 cheaper than the 32GB iPhone).
barredo 14y ago
Miniaturization is expensive. It would be also 2x-3x more powerful than a iPad mini
jonknee 14y ago
All iPads are sold unsubsidized, most iPhones are sold subsidized. It's a lot easier to soak the mobile operators than it is the consumer at the store trying to decide if they should buy luxury item.
nilsbunger 14y ago
In the US, carrier subsidies distort pricing. The iPhone premium is paid by the carrier. For example, AT&T retail iPhone 5 is $649, while retail SG III is $499. But both are $199 to the consumer with a 2-year contract. I have no idea how this works out in other countries... $649 is a lot to pay for a phone when you can buy a galaxy nexus for $349 at retail!
jdietrich 14y ago
Because Apple set prices for normal human beings, rather than geeks. The clearest example is the iPod Touch vs the iPhone. From a geek's perspective, they are the essentially same product, differing only in the presence or absence of a cellular radio. The iPhone is more than twice the price of the iPod Touch, which is a scandalous mark-up for the addition of what we know to be a relatively inexpensive component. From the perspective of nearly everyone who has actually bought an iPhone, the two devices are completely different - the iPhone is a smartphone, the iPod Touch is just an MP3 player with games. That's why Apple are the most valuable company on earth.
- MichaelApproved 14y ago
  Apple is the most valuable public company on earth. There are much larger non-publicly traded companies. http://www.quora.com/Business/What-is-the-most-valuable-private-company-in-the-world http://www.quora.com/Business/What-is-the-most-valuable-priv...
- snogglethorpe 14y ago
  > The clearest example is the iPod Touch vs the iPhone. From a geek's perspective, they are the essentially same product, differing only in the presence or absence of a cellular radio. This isn't really true though—Apple clearly gimps the ipod-touch in various small-but-annoying ways. I don't know whether this is just to keep costs down, or to encourage people to buy the iphone unless they really, really, can't afford it. For instance, the camera on the ipod-touch 4g is downright awful, whereas that on the iphone4 is quite decent. Lack of GPS functionality is another example.
jsz0 14y ago
I don't see how they could possibly justify their iPhone prices Two totally different markets. Carrier subsidies inflate the price of SmartPhones because the consumer is not paying the full price up front. They don't even know what the real price is. The carriers would certainly like to negotiate prices lower however the iPhone owns enough of the market, by itself, that Apple has the upper hand. A carrier who doesn't offer the iPhone these days is in trouble. This is true of other types of SmartPhones too. Having the latest and greatest Samsung phone is valuable to the carrier as well. So they pay a bit more to lure in customers with nicer phones. Don't feel too bad for the carrier's though because they still make quite a lot of money in this arrangement too.

NathanKP 14y ago

I imagine because iPhone is a smaller device it is more expensive to produce.

jonknee 14y ago
The iPod Touch is even smaller and has almost the same hardware (lacking cellular radios). Apple still is able to make a nice profit selling them at $299 ($450 cheaper than the 32GB iPhone).

barredo 14y ago

Miniaturization is expensive. It would be also 2x-3x more powerful than a iPad mini

jonknee 14y ago

All iPads are sold unsubsidized, most iPhones are sold subsidized. It's a lot easier to soak the mobile operators than it is the consumer at the store trying to decide if they should buy luxury item.

nilsbunger 14y ago

In the US, carrier subsidies distort pricing. The iPhone premium is paid by the carrier. For example, AT&T retail iPhone 5 is $649, while retail SG III is $499. But both are $199 to the consumer with a 2-year contract. I have no idea how this works out in other countries... $649 is a lot to pay for a phone when you can buy a galaxy nexus for $349 at retail!

jdietrich 14y ago

Because Apple set prices for normal human beings, rather than geeks. The clearest example is the iPod Touch vs the iPhone. From a geek's perspective, they are the essentially same product, differing only in the presence or absence of a cellular radio. The iPhone is more than twice the price of the iPod Touch, which is a scandalous mark-up for the addition of what we know to be a relatively inexpensive component. From the perspective of nearly everyone who has actually bought an iPhone, the two devices are completely different - the iPhone is a smartphone, the iPod Touch is just an MP3 player with games. That's why Apple are the most valuable company on earth.

MichaelApproved 14y ago
Apple is the most valuable public company on earth. There are much larger non-publicly traded companies. http://www.quora.com/Business/What-is-the-most-valuable-private-company-in-the-world http://www.quora.com/Business/What-is-the-most-valuable-priv...
snogglethorpe 14y ago
> The clearest example is the iPod Touch vs the iPhone. From a geek's perspective, they are the essentially same product, differing only in the presence or absence of a cellular radio. This isn't really true though—Apple clearly gimps the ipod-touch in various small-but-annoying ways. I don't know whether this is just to keep costs down, or to encourage people to buy the iphone unless they really, really, can't afford it. For instance, the camera on the ipod-touch 4g is downright awful, whereas that on the iphone4 is quite decent. Lack of GPS functionality is another example.

jsz0 14y ago

I don't see how they could possibly justify their iPhone prices Two totally different markets. Carrier subsidies inflate the price of SmartPhones because the consumer is not paying the full price up front. They don't even know what the real price is. The carriers would certainly like to negotiate prices lower however the iPhone owns enough of the market, by itself, that Apple has the upper hand. A carrier who doesn't offer the iPhone these days is in trouble. This is true of other types of SmartPhones too. Having the latest and greatest Samsung phone is valuable to the carrier as well. So they pay a bit more to lure in customers with nicer phones. Don't feel too bad for the carrier's though because they still make quite a lot of money in this arrangement too.