Why is iPad cheaper than iPhone?

uPhone

macrumors regular
Original poster
Sep 15, 2007
104
0
16GB iPad 2 w/ 3G = $629.00 and 16GB iPhone is $649.00

why is the tiny phone more expensive?

shouldn't larger screen = more expensive to make?
 

bandofbrothers

macrumors 601
Oct 14, 2007
4,780
328
Uk
Over in the Uk the shops are pushing the ipad 2 alot by offering good deals and discounts, as its not been released that long.

The ipad 1 has even heavier discounts.

I think thats why it is less in cost than the iphone 4.
 

NorrisKillsKids

macrumors 6502a
Jan 14, 2008
587
3
The iPhone is definitely marked up a ton but comparing it to the ipad isn't right since it is different sized parts/not the same screen/etc...
 

ap3604

macrumors 68000
Jan 11, 2011
1,929
0
16GB iPad 2 w/ 3G = $629.00 and 16GB iPhone is $649.00

why is the tiny phone more expensive?

shouldn't larger screen = more expensive to make?
I'd say a contributing factor is because Apple is hungry for profits (for itself and it's investors)

Apple knows that the iPhone is very popular and in demand so they price it as high as they can according to what people will pay.
 
Last edited:

Andy Ftw

macrumors regular
Mar 12, 2011
159
2
I'd say a contributing factor is because Apple is greedy for profits.

Apple knows that the iPhone is very popular and in demand so they get as much $ from people as they can.
Agreed.

Obviously you can't really criticize them though, a company with the aim ro make money, although I guess the point about smaller parts is true however the last iPhone didn't have retina display and was the sane price on release and I would be quite shocked if they raised the price of the iPad if they bought out a retina version.
 

b166er

macrumors 68020
Apr 17, 2010
2,062
18
Philly
honestly I think $200-$300 for an iPhone is reasonable. 99% of the time I do not need to take my laptop with me when I leave the house. And if I did it would require a tether or hotspot. My iPhone can handle most on the go computing, has a data connection, plus it makes calls. I can use it for hours on end without the battery dying too, unlike my laptop.

Considering I need to get my cell phone service from somewhere, I don't mind paying the $300 for the higher storage iPhone.

If you want to buy out of contract that is of course a different story, but like I said I need to get my service from somewhere. It might as well be ATT/VZW.
 

kdarling

macrumors P6
Someone have the actual costs of these devices handy so we can know what we are comparing?
Teardown Bill of Materials for:

iPad2 = $325
iPhone4 = $190

The profit margin on the iPhone is the highest in the smartphone industry. For example, the Nokia N8 has almost the same BOM cost, but Nokia prices it at $549, a hundred dollars less than the iPhone... and you can find it for much less than that.
 

boss.king

macrumors 68040
Apr 8, 2009
3,240
56
Teardown Bill of Materials for:

iPad2 = $325
iPhone4 = $190

The profit margin on the iPhone is the highest in the smartphone industry. For example, the Nokia N8 has almost the same BOM cost, but Nokia prices it at $549, a hundred dollars less than the iPhone... and you can find it for much less than that.
That's actually pretty shocking! Imagine how may they could sell if they dropped the price. But then again they sell millions regardless.
 

unlimitedx

macrumors 6502a
Jun 15, 2010
635
0
fortunately the resale value of apple products is pretty good, so the initial cost can be partially recuperated :)
 

decafjava

macrumors 68040
Feb 7, 2011
3,407
3,027
Geneva
Thanks for the info kdarling. Thing is most people (like myself) get the iPhone on contract thus at a subsidised price while I suppose most buy the iPad outright-at least the wifi version.
 

drpellypo

macrumors 6502a
Nov 19, 2007
535
22
Northumberland, UK
Teardown Bill of Materials for:

iPad2 = $325
iPhone4 = $190

The profit margin on the iPhone is the highest in the smartphone industry. For example, the Nokia N8 has almost the same BOM cost, but Nokia prices it at $549, a hundred dollars less than the iPhone... and you can find it for much less than that.
Where is that info from? I ask because I struggle to see how Apple can make much profit if the material cost alone is that much on an iPad.
 

splashnader

macrumors 6502a
Jul 1, 2008
839
0
Via Satellite
Because the iPhone can do everything that the ipad can do, plus make voice calls. Plus all the other features that come with voice/phone capabilities.

More features, usually means more money.
 

Interstella5555

macrumors 603
Jun 30, 2008
5,219
4
Teardown Bill of Materials for:

iPad2 = $325
iPhone4 = $190

The profit margin on the iPhone is the highest in the smartphone industry. For example, the Nokia N8 has almost the same BOM cost, but Nokia prices it at $549, a hundred dollars less than the iPhone... and you can find it for much less than that.
Tear down cost means nothing, I'd like to see your accounting for the R&D.
 

Small White Car

macrumors G4
Aug 29, 2006
10,901
1,164
Washington DC
I'd say a contributing factor is because Apple is greedy for profits.

Apple knows that the iPhone is very popular and in demand so they get as much $ from people as they can.
Yep, this is the reason.

Although I think the word 'greedy' is dumb here.

Should I say that you're greedy for wanting a paycheck at work? I could, I guess, but wouldn't you agree it sounds kind of dumb?
 
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