I agree, but not just with Apple. Other smartphone manufacturers have ridiculous off contract prices as well (For example: Sprint Nexus S is $699.99 off contract...for a year old phone with a replacement coming out soon! AT&T version is a bit more reasonable at $529, but still hardware comparable to iPhone 4.)
iPhone 4S 16GB - $649
-3.5" IPS retina display
-3G/Wifi chip
-A5 processor
-512MB RAM
iPad Wifi/3G 16GB - $599
-9.7" IPS display, much lower PPI
-3G/Wifi chip
-A5 processor
-512MB RAM
Even though the retina display is higher PPI I imagine it is still cheaper than the iPad's 9.7" IPS display. Overall I think the 4S should be $549 off contract.
I think the carriers probably have something to do with off contract pricing for all devices though. Or maybe it is just industry wide price fixing.
price fixing or high margins! where do you think apple got 80 Billion dollar money
it is from us
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$299 iPhone 3GS 8GB
$399 iPhone 4 8GB
$499 iPhone 4S 16GB
$599 iPhone 4S 32GB
$699 iPhone 4S 64GB
would be nice, if apple willing take a bit of margin cut, oh well