Why are iPhone's so much more expensive than iPod Touches?

Discussion in 'iPhone' started by mrsir2009, Jan 14, 2012.

  1. mrsir2009 macrumors 604

    mrsir2009

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    #1
    Here in New Zealand a base iPhone 4S goes for $1050, while a base iPod Touch goes for $260. Why is the price gap so much? The main difference seems to be that the iPhone has 3G, thus allowing it to be a phone. But does that warrant a $790 price difference?
     
  2. Intell macrumors P6

    Intell

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    #2
    They have the cellular radios, a higher quality screen, a bigger battery, more overall mass, another pane of glass, a compass, better camera, earpiece, proximity sensor, mute switch, another microphone, better speaker.
     
  3. ChazUK macrumors 603

    ChazUK

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    #3
    Wirelessly posted (Mozilla/5.0 (Linux; U; Android 2.3.7; en-gb; GT-I9100 Build/GRJ22; CyanogenMod-7) AppleWebKit/533.1 (KHTML, like Gecko) Version/4.0 Mobile Safari/533.1)

    What Intell said + I'd imagine that R&D + licensing adds to the cost.
     
  4. lordofthereef macrumors G4

    lordofthereef

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    #4
    IMO, none of this. It's because they can be.
     
  5. mrsir2009 thread starter macrumors 604

    mrsir2009

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    #5
    But they both have retina displays now, don't they? Oh, and where is the other mic located? I thought the only one was the one adjacent to the loudspeaker :eek:
     
  6. gladoscc macrumors 6502

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    No, it does not warrant the extra price. An iPhone costs like 50% more to make compared to the iPod touch.

    However, you have to realize that Apple doesn't want carriers to get pissed off, so they have to set iPhones at a absurdly high price so that carriers can get their margins. If they sold iPhones at the markup of other apple products...

    will you buy any contracts, that costs $2000 over 2 years, if the phone was $499?
     
  7. cwwilson macrumors 65816

    cwwilson

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  8. mrsir2009 thread starter macrumors 604

    mrsir2009

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    #8
    Yeah, I reckon thats why :(
     
  9. Intell macrumors P6

    Intell

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    #9
    The iPhone's screen is an IPS screen. Where the iPod Touch's is TFT. Put the two next to each other and you'll see the difference. The iPhone has an secondary microphone near the headphone jack for backgound noise canceling.
     
  10. Invincibilizer macrumors 6502a

    Invincibilizer

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    #10
    iPhones cost 100$ to make then iPod touches, their price has nothing to do with the specs and materials. Apple knows that iPhones are profitable so why not place the price point at 600$, people will still buy so the iPhone is overpriced compared to the touch. The carrier assumes the large money difference so at the end it works out for Apple and the consumer.
     
  11. Apple OC macrumors 68040

    Apple OC

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    #11
    could be ... one is a phone ... the other is a music player
     
  12. mrsir2009 thread starter macrumors 604

    mrsir2009

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    #12
    Wow, your right, the iPhone's screen has an incredibly wide viewing angle!

    ----------

    The iPod is a LOT more than an iPod now. Its marketed by Apple themselves as a gaming device.
     
  13. gladoscc macrumors 6502

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    #13
    By the way, Apple purposefully crippled the iPod Touch. The iPod Touch has half as much RAM as the iPhone 4. Those amounts of RAM costs next to nothing to make, and it would have cost them more to start a separate production line for "A3.5s" than just put the full A4 on the iPT.
     
  14. mrsir2009 thread starter macrumors 604

    mrsir2009

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    #14
    It probably wouldn't cost a ton to give the iPod Touch a camera flash either...
     
  15. wrinkster22 macrumors 68030

    wrinkster22

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    #15
    Your opinion is not correct. The things cost more for apple so they charge us more.

    To the OP:
    R&D is huge (siri), the IPH4S is dual core, and what everyone else said.
     
  16. Apple OC macrumors 68040

    Apple OC

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    #16
    I agree that an iPod is much more than a media player ... however until it becomes a phone ... it will not be priced like a smartphone

    the answer as to price difference is still ... one is a smartphone the other is not
     
  17. Invincibilizer macrumors 6502a

    Invincibilizer

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    #17
    It does cost more but not so much that it warrants 400$ more pricetag than iPhones. Unlocked iPhones are a rip off, it hurts the carriers only since most people go for the 2 year contracts, that why Apple prices the iPhone at a high pricetag.
     
  18. TM WAZZA macrumors 68000

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    #18
    Good thing Apple products have unmatchable resale value. I'll be set before the next iPhone comes out. ;)
     
  19. melterx12 macrumors 6502a

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    #19
    Part of it is because of the extra hardware. an iPhone has cellular radios, GPS radio, second mic for noise cancellation, speaker, earpiece, etc.

    However it's mostly because cellular carriers want you to sign contracts and buy subsidized phones, and if you could just buy an iPhone for the same price as an iPod touch no one would be signing contracts.
     
  20. Invincibilizer macrumors 6502a

    Invincibilizer

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    #20
  21. Votekinky06 macrumors 6502

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    #21
    I think it's partly because Apple can charge a lot for the iPhone and still reach a broad audience because the carriers subsidize the phones. iPods are never subsidized and therefore must be sold at a lower margin, relying heavily on velocity.
     
  22. Nermal Moderator

    Nermal

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    #22
    The prices have actually increased here since launch; my 32 GB 4S was $849 at launch and is now $1049 for that model on a 24-month term! :eek: (note that I'm on a relatively cheap plan).
     
  23. iSayuSay macrumors 68030

    iSayuSay

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    #23
    iPhone surely have much more compared to iPod. Screen is way better even though both claimed to have Retina Display.

    When I look at my iPod Touch 4g again after tinkering a few weeks with iPhone, it was like .. Hmm my iPod does really this bad? Less contrast, black level is terrible. Slow and laggy compared to 4S (yeah of course). But I dont have a chance to compare with iPhone 4. My phone even have smooth and better home button. On paper, iPhone and iPod Touch may share some similar spec, but in reality they dont even come close. That explains the price difference.

    And like Intell posted, it has gps, cellular radio, better build quality, compass and many other tidbits. For things it can do, iPhone is quite worth at retail unlocked price ($649-849) although still, $100 increments is too high for merely additional capacity.

    But if you paid like > $1000 for unlocked iPhone, I'd be pissed off too, it's not really worth that much. But maybe that's what you get in your country, huh?
     
  24. Votekinky06 macrumors 6502

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    #24
    WOW, what does and unlocked model cost over there?
     
  25. G-Mo macrumors 6502

    G-Mo

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    #25
    The 4S is $1049 factory unlocked in New Zealand...
     

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