I don't think he has bought the phone... I think he wishes to buy the phone and is mad that he can't afford it... He clearly has started this thread with a one point agenda... He doesn't even read the posts which address and answer his concerns...
I've come to realize this. Thanks.
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I made a typo. Corrected that and added the iPhone 6 price while I was at it.
It costs more to make the logic board smaller. But for things like displays and digitizers (two significant costs on the iPads), costs increase with size. Same with batteries. LTE iPads use the same basebands as iPhones, and thus are subject to the same IP costs for using cellular technology. While software support for the phone is missing, iPads have plenty of unique software enhancements themselves.
The only real answer is that Apple is able to get away with the iPhone pricing because of subsidies inflating the prices across the board. If those subsidies never existed, the iPhone would very likely be cheaper than its bigger brothers.
That bottom part is pure bull. Subsidies don't inflate the price. The very definition of a subsidy is to decrease the price. Seriously...
Also I noticed later on that you modified your post and I modified mine in accordance.