While the entry-level iPad mini is priced at $329 for a product that costs Apple $199 to build, the iPhone 5 costs Apple just $10 more to build but sells for $649.
To be fair, I'm sure both the assembly and R&D costs for the iPhone 5 are much higher. That said, yeah, they're still making lots more profit on the iPhone, which is priced that high simply because carriers are (begrudgingly) willing to pay $450 subsidies for the privilege of selling the iPhone.