Why is iPad cheaper than iPhone?

Discussion in 'iPhone' started by uPhone, Jul 25, 2011.

  1. uPhone macrumors regular

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    Sep 15, 2007
    #1
    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?
     
  2. Intell macrumors P6

    Intell

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    #2
    The iPhone needs smaller parts and it's retina IPS screen is expensive.
     
  3. Zalatorisaurus, Jul 25, 2011
    Last edited: Jul 25, 2011

    Zalatorisaurus macrumors member

    Zalatorisaurus

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  4. bandofbrothers macrumors 601

    bandofbrothers

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    #4
    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.
     
  5. NorrisKillsKids macrumors 6502a

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    #5
    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...
     
  6. boss.king macrumors 68040

    boss.king

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    #6
    This. Smaller parts are more expensive to manufacture.
     
  7. ap3604, Jul 25, 2011
    Last edited: Jul 26, 2011

    ap3604 macrumors 68000

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    #7
    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.
     
  8. Andy Ftw macrumors regular

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    Mar 12, 2011
    #8
    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.
     
  9. b166er macrumors 68020

    b166er

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    #9
    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.
     
  10. Geckotek macrumors G3

    Geckotek

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  11. sbddude macrumors 6502a

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    #11
    Ipad 2 with 3g has the same modem chips as the verizon iphone.
     
  12. pyro008 macrumors 6502

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    May 23, 2011
    #12
    Its the same reason all cell phones are ridiculously overpriced.
     
  13. kratoss macrumors newbie

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    Jul 25, 2011
  14. Geckotek macrumors G3

    Geckotek

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    #14
    Good point.


    Someone have the actual costs of these devices handy so we can know what we are comparing?
     
  15. kdarling macrumors demi-god

    kdarling

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    #15
    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.
     
  16. Geckotek macrumors G3

    Geckotek

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  17. LIVEFRMNYC macrumors 603

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    #17
    The best simplified answer. :D
     
  18. Geckotek macrumors G3

    Geckotek

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    #18
    Except that it's wrong.
     
  19. boss.king macrumors 68040

    boss.king

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    #19
    That's actually pretty shocking! Imagine how may they could sell if they dropped the price. But then again they sell millions regardless.
     
  20. unlimitedx macrumors 6502a

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    #20
    fortunately the resale value of apple products is pretty good, so the initial cost can be partially recuperated :)
     
  21. decafjava macrumors 68000

    decafjava

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    #21
    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.
     
  22. drpellypo macrumors 6502

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    #22
    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.
     
  23. splashnader macrumors 6502a

    splashnader

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    #23
    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.
     
  24. Interstella5555 macrumors 603

    Interstella5555

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    #24
    Tear down cost means nothing, I'd like to see your accounting for the R&D.
     
  25. Small White Car macrumors G4

    Small White Car

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    #25
    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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