Why are iPhones more expensive than iPads?

kylera

macrumors 65816
Original poster
Dec 5, 2010
1,196
27
Seoul
So I was looking up prices of unlocked iPhone 6 and iPad Air 2 cellular models, and noticed that for some reason, given the same size, the iPhone is more expensive than the iPad. In the US store, the iPhone 6 64GB model costs $749 while the iPad Air 2 64GB cellular costs $729. While the difference here is $20, in other markets (my home market of Korea for example), given the same storage size, the iPhone costs just under $900 while the iPad Air 2 costs $800; the difference is much more pronounced.

I was going to attribute this to miniaturization costing more, but if that logic were to stand, the iPhone 6+ should be cheaper than the iPhone 6, but as most people know, it isn't.

Is it just marketing that makes the iPhone more expensive?
 

cynics

macrumors G4
Jan 8, 2012
11,313
1,696
The price of either device has about 5% to do with manufacturing processes and cost and 95% to do with what the market is willing to pay. And currently the iPhone is a more popular thus a more expensive product then the iPad (cost vs material wise).
 
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bniu

macrumors 6502a
Mar 21, 2010
985
179
It's because the iPhone price is artificially inflated by the subsidies carriers have offered on smartphones. With carrier subsidies going away, and more people being exposed to the full price, I'm thinking iPhone prices will start to come down.
 

rgarjr

macrumors 603
Apr 2, 2009
6,470
313
Southern California
It's because the iPhone price is artificially inflated by the subsidies carriers have offered on smartphones. With carrier subsidies going away, and more people being exposed to the full price, I'm thinking iPhone prices will start to come down.
That's true but a lot people are going to use the monthly installments rather then forking out the full price.
 

Shanghaichica

macrumors G4
Apr 8, 2013
11,112
7,507
UK
We don't NEED phones. Especially not iPhones.
I agree. Do we really need a smartphone? Probably not. However even if you could make the argument for a smartphone in today's world a $/£100 smartphone is enough. We just want a high end iPhone but we don't need one.

You can justify anything if you really want to.
 

maflynn

Moderator
Staff member
May 3, 2009
63,852
30,369
Boston
We don't NEED phones. Especially not iPhones.
You might not need a phone, but for my job, and life I certainly do. While its not at the level of need like food and shelter, it is a requirement for me to earn a living, stay in touch with my wife and kids.
 

Ethos Evoss

macrumors regular
Jul 17, 2013
159
21
Earth
I think we need smartphones, because it is only flexible mobile device very easy to portable ..
Ppl buying less and less desktops or laptops .. everybody buys smartphones it is like mania .. since 2010
What I mostly HATE on smartphones is that the internet browsers doesn't display sites properly like on desktops or laptops. Horrible
 

cynics

macrumors G4
Jan 8, 2012
11,313
1,696
We don't NEED phones. Especially not iPhones.
If we travel down that path we don't actually need much of anything. 3 sticks, 2 to rub together to make fire the other one for a fishing rod. We have to be realistic based on the world we live in and most of us do need a phone to function in todays society.

And if you are going to be getting a phone anyway it might as well be a nice one (iPhone). :)
 

rugmankc

Contributor
Sep 24, 2014
2,131
629
I bought my first phone in the early 90's for business appts. If you were ever stuck in the boonies on a 2 degree February day shortly after a snowstorm you would think differently. It's the main reason my family has them, as we are not heavy social users.
 

lakaiordie

macrumors 65816
Jun 17, 2008
1,443
237
like most people said, most people NEED a phone that can check their emails, send texts at any location, and make a phone call. which most people never buy full outright (most, i know a lot of people do) but you have to pay full price upfront for an iPad. so that is an instant profit for apple. it makes sense. (now i know you can do that with iPads now but that always hasn't been the case). also a a 64gb iPad air 2+cellular is $729. So about a $120 difference from the same size iPhone 6 plus.
 

mpavilion

macrumors 6502a
Aug 4, 2014
924
534
SFV, CA, USA
My understanding is that there are significant license fees involved w/using cellular radio patents.

I'm sure that doesn't account for the entire price difference (and of course other manufacturers sell smartphones for as little as $60).
 
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cfedu

Suspended
Mar 8, 2009
1,165
1,508
Toronto
The iPhone costs more because Apple can sell the iPhone for more. The BOM for the iPhone 6 plus 128 GB is less than the iPad Air 2 16 GB wifi($270). If Apple could sell the iPad at iPhone margins, they would.
 

terraphantm

macrumors 68040
Jun 27, 2009
3,678
507
Pennsylvania
I think it has to do with the carrier subsidies like mentioned above. Until recently, most people were insulated from the real price; they just saw the $199/299. May change in the future, though Apple will try to do everything it can to hold onto that profit margin
 

nviz22

macrumors 603
Jun 24, 2013
5,278
3,063
The camera module is a huge difference between the iPad and iPhone 6+. Idk camera part costs though.
 

aneftp

macrumors 601
Jul 28, 2007
4,247
463
It's because the iPhone price is artificially inflated by the subsidies carriers have offered on smartphones. With carrier subsidies going away, and more people being exposed to the full price, I'm thinking iPhone prices will start to come down.
I thought the same thing but that hasn't been the case.

Samsung has even raised their prices for their flagship phones. The Galaxy S3 was $550 mspr at ATT. Now the Galaxy S6 is like $650-700? The Galaxy S6 EDGe is like $800?

So prices aren't coming down cause carriers are doing installment plans and spreading the payments to as much as 30 months to make it look the phones cost less.
 
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ackmondual

macrumors 65816
Dec 23, 2014
1,040
310
U.S.A., Earth
Bound to cost less. Screen especially, case. Fact is we NEED a phone, we WANT a tablet so they rice according to the market, not to the margin
While some of us do legitimately NEED a phone in the modern era (we don't need to compare to our caveman ancestors), the latest iPhone, nor high end Android is necessary either. Some folks use them to make calls.... that's about it. I've known one person who swapped his iPhone for a dumbphone. Quadrulpled his battery life ;):cool:, and uses an iPad as his access to iOS. Others get by just fine on a low to mid-end Android phone, or an iPhone from 2+ generations ago.
 

Vicrooloo

macrumors regular
Dec 8, 2015
198
87
Its likely because the iPad doesn't have any of the cellular modules that the iPhone has. All of those antennae bands and licensing fees etc adds up.
 
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