I understand the iPod touch has an older generation A series chip, but fundamentally the iPod touch and iPhone are the same aluminum build with a retina touch screen display. Yes the iPhone has more premium materials, and an LTE chip, but does that warrant a $400 increase in price? Wouldn't a $150 increase be more reasonable so that the iPhone costs $400 total and not $650? This isn't limited to iPhones, most smartphones are the same crazy prices. But do they simply charge so much because they can? Similar to a $5 hot dog at a baseball game when you can get them for $1 anywhere else? I just don't understand how these phones cost the same as a MacBook Air?