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

iSayuSay

macrumors 68040
Feb 6, 2011
3,250
379
As pointed out in Post #53 above, R&D and licensing isn't enough to account for the difference.

People get overwhelmed by the use of "billions", but big numbers divide just as easily as small numbers :)

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Reportedly 70% of Apple's revenue comes from iOS devices. So just for fun, let's allocate 70% of Apple's R&D to them as well for 2011. Does that sound fair?

70% of $2.4 billion total R&D = $1.68 billion R&D for iOS.

$1.68 billion R&D / 160 million iOS devices sold = ~ $10 per device R&D cost.
Well yeah .. So true. RnD costs essentially means nothing. Well maybe it was huge at the beginning. But after several years, it's all about ripping off and harvesting the crop.

Now who's being the crop here? :eek: