Important question - Why does the iPhone cost more then the iPad

-BigMac-

macrumors 68000
Original poster
Apr 15, 2011
1,558
1,206
Melbourne, Australia
My friend just asked me this. And it never crossed my mind.

WHY DO IPHONES COST MORE THAN IPADS?

Here's why i think this doesn't make sense.

a) iPad uses more material, Aluminium/glass.
b) iPad has a larger battery with similar battery-to-size performance as the iPhone. So the iPad battery must cost more.
c) iPad has a bigger screen. At similar retina ppi as iPhone. This must be much more expensive.
d) iPad has a quicker processor.
e) iPad require more packaging material.
f) iPad costs more to transport to Apples worldwide stores, uses more transport space/weight.



PRICE COMPARISON (AUD) [we will use iPad wifi+Cellular (so Cellular technology isn't a factor in the iPhone and iPad price difference)]:

iPad 4th Generation Retina (16Gb wifi+cellular): $679
iPhone 5 (16Gb): $799

iPad 4th Generation Retina (32Gb wifi+cellular): $789
iPhone 5 (32Gb): $899

iPad 4th Generation Retina (64Gb wifi+cellular): $899
iPhone 5 (64Gb): $999




Not to mention the 128Gb iPad 4th Generation with Cellular, has double the memory of the top-end iPhone 5, nearly 4 extra inches of retina screen real-estate diagonally and a quicker processor and is.. wait for it.. $10 more expensive.


Can someone explain this to me please?

Thanks :D
 

jer04

macrumors regular
Nov 17, 2012
234
4
Townsville, Australia
first of all, the ppi of the screen on ipad is lower than iphone as far as i know.

about the price, maybe they want to push people to sign a contract instead of buying outright? or maybe just because they can..

it's very interesting how they priced it in australia. in the states, 16gb iphone 5 sim free is $649 and $629 for 16gb ipad 4th gen cellular+wifi. not that much different from each other.

australian price is always much higher...:eek:
 
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Tankmaze

macrumors 68000
Mar 7, 2012
1,621
243
The answer is : miniaturization

Even though iPad uses lots of material, as in screen,etc but the miniaturization
of the iPhone costs higher = more difficult to make & assemble.
 

Charadis

macrumors 6502a
Jul 3, 2010
907
119
The answer is : miniaturization

Even though iPad uses lots of material, as in screen,etc but the miniaturization
of the iPhone costs higher = more difficult to make & assemble.
The iPad Mini was smaller and cost ~$170 less than similar iPad 4th gen model (ie, 16gb cellular/wifi). Then again, the mini doesn't have a retina display, has an older processor, and half the memory.

However, compared to the more similar iPad 2, the Mini is still less expensive in MSRP. Sent from my iPhone 5
 

Mrbobb

macrumors 601
Aug 27, 2012
4,989
192
This is important? Lots of things in life are like that.

Why do they charge u less for a Happy Meal than if u were going to buy the burger, fry, and drink separately?
 

Small White Car

macrumors G4
Aug 29, 2006
10,897
1,125
Washington DC
Because more people want iPhones than want iPads.

That's mostly how prices are decided, analyzing material costs really tells you nothing. Do you think it costs Toyota more to build a Lexus than a Prius?
 

Mlrollin91

macrumors G5
Nov 20, 2008
13,516
8,770
Ventura County
In the US, the price differences are much smaller. I'm assuming you are using Australian price points.

iPad + Cellular 16GB - $629
iPad + Cellular 32GB - $729
iPad + Cellular 64GB - $829

iPhone 5 16GB - $649
iPhone 5 32GB - $749
iPhone 5 64GB - $849

So though there is a $20 dollar difference, it is not $120, so it's not as bad.

iPhone's are using 1 flash chip for memory, while iPad's are using 2, so technically that will cut down on the cost of the iPad. Usually 2 smaller chips are cheaper than 1 big one.
 

hexomega

macrumors newbie
Jun 8, 2013
8
0
A variety of things, but I have an inkling that what's driving up cost is cell phone contracts. The iPhone to my knowledge does not cost more to make, it actually costs substantially less.

4G, 64GB iPad costs $409 to make.

A 64GB iPhone 5 costs $238 to make.

They're charging more to discourage people from buying outside of cell phone contracts. That's the only reason I can think of. There are other small reasons that could contribute of course, but I doubt they're as relavent. We'll never know why because Apple will never give us a straight answer, but Apple isn't the only company that charges more for its phones than it does for its Tablets.

Sources:

http://www.isuppli.com/Teardowns/News/pages/iPhone5-Carries-$199-BOM-Virtual-Teardown-Reveals.aspx
http://www.isuppli.com/Teardowns/News/pages/New-iPad-32-GB-4G-Carries-364-35-Bill-of-Materials.aspx

Because more people want iPhones than want iPads.

That's mostly how prices are decided, analyzing material costs really tells you nothing. Do you think it costs Toyota more to build a Lexus than a Prius?
I have no idea about Lexus but I can state for a fact that it costs more to build an Audi than it does to build a VW and they're built by the same company.