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

Discussion in 'iPhone' started by -BigMac-, Jun 16, 2013.

  1. -BigMac- macrumors 6502a

    -BigMac-

    Joined:
    Apr 15, 2011
    #1
    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
     
  2. jer04, Jun 16, 2013
    Last edited: Jun 16, 2013

    jer04 macrumors regular

    jer04

    Joined:
    Nov 17, 2012
    Location:
    Townsville, Australia
    #2
    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:
     
  3. Tankmaze macrumors 68000

    Tankmaze

    Joined:
    Mar 7, 2012
    #3
    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.
     
  4. tymaster50 macrumors 68030

    tymaster50

    Joined:
    Oct 3, 2012
    Location:
    New Jersey
    #4
    the iPhone is harder to assemble, plus you know it's a PHONE. It can technically do more than a tablet.
     
  5. Charadis macrumors 6502a

    Joined:
    Jul 3, 2010
    #5
    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
     
  6. Mrbobb macrumors 601

    Joined:
    Aug 27, 2012
    #6
    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?
     
  7. NickPhamUK macrumors 6502

    NickPhamUK

    Joined:
    May 6, 2013
    #7
    You should have asked why are they both ****** overpriced instead.
     
  8. Small White Car macrumors G4

    Small White Car

    Joined:
    Aug 29, 2006
    Location:
    Washington DC
    #8
    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?
     
  9. Applejuiced macrumors Westmere

    Applejuiced

    Joined:
    Apr 16, 2008
    Location:
    At the iPhone hacks section.
  10. Mlrollin91 macrumors G4

    Mlrollin91

    Joined:
    Nov 20, 2008
    Location:
    Ventura County
    #10
    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.
     
  11. hexomega macrumors newbie

    Joined:
    Jun 8, 2013
    #11
    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

    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.
     

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