why 3 times cheaper ?

Discussion in 'iPod touch' started by UKBeast, Jun 16, 2012.

  1. UKBeast macrumors 6502

    Jan 21, 2010
    Why ipod touch is 3 times cheaper than an ipod touch phone enabled version which is called iphone ?

    The only major difference phone functionality apart from gps. It does not sound rational to pay 3 times of the same hardware with added phone function.
  2. jeremyshaw macrumors 6502

    Oct 29, 2011
    A4 vs A5 SoC
    Qualcomm radio baseband chip (also has the GPS built into this)
    certification with national certs (FCC, in the US)
    certification with carriers (Verizon, AT&T, Sprint)
    Cheaper TN vs IPS screen panel (also higher power draw of IPS setup, due to inherently greater opacity of IPS)
    larger battery
    more RAM, base storage

    ^^All exact reasons why the iPhone is more expensive than the iPod touch, beyond less clear ones, such as marketing.

    Also, I'd venture the iPhone soaks up most of the development costs, while the iPod touch mostly benefits from the R%D already sunk into the iPhone.
  3. greg555 macrumors 6502a

    Mar 24, 2005
    Price is not determined by the cost to produce (think Coca Cola). Prices are set by companies to maximize their profits.
  4. Jessica Lares macrumors G3

    Jessica Lares

    Oct 31, 2009
    Near Dallas, Texas, USA
  5. Primejimbo macrumors 68040

    Aug 10, 2008
    Some of this wasn't true a few years ago. I think they both had the same RAM and processor at 1 point.
  6. Carlanga macrumors 604


    Nov 5, 2009
    besides what has been said:
    Since the iPhone uses one slot for the phone and the other for the flash memory, the memory modules are more expensive since it's one piece. Memory tends to increase price pretty fast when doubling in one stick.

    iPod Touch: 8 stick + 8 stick flash memory for total of 16
    iPhone: 16 of flash memory stick

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