Why is the iPhone so expensive?

Discussion in 'iPhone' started by joshlalonde, Aug 29, 2014.

  1. joshlalonde macrumors 6502


    Jul 12, 2014
    As the title states, I'm a bit horrified by the price of an iPhone.
    Anyone know of a cheaper way to get one? I don't want a 2 year plan/contract. I pay a monthly, no-contract $30/mo.

    I have a Windows Phone. But I don't want a Windows Phone anymore. I want an iPhone. Except it's ridiculously priced. My carrier has a feature called tabbing where you basically pay off the price by adding +$5 per month. But I still would have to pay $300 outright.

    Now, can anyone tell me why the iPhone costs more than the iPad?
  2. xmichaelp macrumors 68000


    Jul 10, 2012
    No clue and it's the reason I haven't been able to justify one.

    They can ship an iPod Touch at less than half the price of the iPhone, which at the time was pretty comparable to the iPhone 5 besides a few dozen dollars worth of upgraded internals (for apple).

    Also an iPad Mini with the same internals only real difference being a MUCH larger and high res screen is a lot less than a 4 inch iPhone. Makes zero sense. Also, don't tell me it's the smaller size that does it because the smaller iPad is less than the bigger one.

    Only real difference the iPhone has is phone antennas, which I refuse to believe cost hundreds of dollars.
  3. BenTrovato macrumors 68030


    Jun 29, 2012
    Brand management. Why is a Ferrari so expensive? Same principles. The economics don't really make sense though since the resale value is so good on these devices.

    I personally like the iPhone because it's well made. I could never argue that for the price it has the best specs and performance.
  4. xmichaelp macrumors 68000


    Jul 10, 2012
    I was really excited for the 5C because I thought it would be a phone at around nexus pricing unlocked but the pricing they chose ended up being a joke and a half..

    Really the only way I can justify a smartphone is if I get an old iPhone like 4S or I buy a nexus 5 and neither options really thrill me. I want a 30 dollar monthly bill unlocked, that's the sweet spot where I feel I'm not getting gypped by some sleazy carrier company.
  5. Deeds500 macrumors 6502

    Aug 22, 2014
    Therein lies your answer. Millions of people want the iphone. Demand.


    I reckon that's another reason the iphones are expensive. iPhones are built to last. With the free software updates that Apple provides to its customers, an iphone be be new again and last up to 4 years before it really becomes a dead weight. I have an iphone 4s so I've definitely got my money's worth out of it, albeit its time to move on. However if I really had to, I could last on it another year. or maybe even 2.
  6. simon48 macrumors 65816


    Sep 1, 2010
    Apple is a smart company they don't race to the bottom with their prices very much. They keep them high and have incredible margins. It's also buyer psychology that higher prices make the product seem better.

    Based on a few searches, the iPhone has a several hardware differences when compared to the low end iPad. The iPhone adds cellular chips, GPS, vibration motor, proximity sensor, Touch ID, a second microphone for noise cancellation, better main camera and you also get earbuds.
  7. nostresshere macrumors 68030

    Dec 30, 2010
    Cheaper? By a used Iphone 4.
  8. aneftp macrumors 601

    Jul 28, 2007
    iPhone $650 usd 16gb

    Samsung galaxy s5 $650 usd

    It's not any the iPhone is so expensive.

    Samsung and htc m8 aren't exactly cheap either.

    Amazon fire phone $650 usd.

    Apple hasn't raised the prices of it's top iPhone since April 2011 (from $599 to $650).

    But samsung has raised the msrp from $550 to $630 to $650 in past 2 years (ATT msrp pricing).

    So better question is why is samsung raising prices and apple keeping prices the same!
  9. juanrp macrumors 6502a


    Jun 14, 2014
    It's the brand. :apple:
    And the iPhone is a good smartphone in general.

    Apple isn't the only one with expensive phones. Samsung, HTC among others also have expensive smartphones.

    You can get an iPhone for free with a contract. As long as it's 2 years older than the newest flagship.
  10. alice04 macrumors regular


    Feb 15, 2013
    You can really compare iPhone from Windows phone. That's why iPhone is expensive than other brands.
  11. cube macrumors G5

    May 10, 2004
    Because what carriers care about is making you believe you get a great deal.
  12. Gentile macrumors regular


    Apr 29, 2007
    The cheapest I have seen is Virgin Mobile for $487.49 for the 5s. It is $30 no contract per month. You have to put with Sprint network.
  13. radiologyman macrumors 6502

    Jul 23, 2011
    Premium price for a premium smartphone. Get iPhone 5 or 5c, they should be free with contract soon. Or get used one, there will be tons on craigslist in 2 weeks.
  14. AppleFanatic10 macrumors 68030


    Nov 2, 2010
    Encino, CA
    Yea, eBay or something like that.
  15. ron7624 macrumors 68020


    Oct 14, 2011
    Houston, Texas area
    Because they created the need and the solution. And that solution has been head and shoulders above the competition in terms of ease of use and general overall experience.
    In addition they do not want you to pay full price. They want you to subsidize the phone and keep their good customers, the carriers, in business.
    Answer number three is because they can.
    I plan to buy one unsubsidized this time because my contract does not expire until December. It will cost more than my 32gb retina iPad mini, but I'll be able to try out other carriers or use it as an iPod.p. I'll will get a subsidized model in December too. It will be a different size though.
    I usually don't spend this much on tech, but I may this go around. I've got to get 3 subsidized 32gb phones this time around as the 16's aren't cutting it any more, and of course AppleCare for each. Schiech!!
    Bur in any event, I don't begrudge them the price they charge. I'm not sure why. I'm a bit older than most of you and grew up without any tech except radios. I appreciate what these smart phones do.
  16. boast macrumors 65816


    Nov 12, 2007
    I'm guessing it is supply & demand.

    A 16GB iPad Mini with cellular is $529 USD. A 16GB iPhone unlocked is $649.

    And one would assume the iPad would be more expensive than the iPhone...
  17. Ed Miliband macrumors member

    Aug 27, 2014
    Try buying it in the UK

    the $649 16GB iPhone is £549, or ~$910
    32GB $749 model is £629 / ~$1050
    top end $849 model is £709 which is ~$1180

    In other words, the 16GB model in the UK costs more than the 64GB model in the US.

    justify that.
  18. Apple fanboy macrumors Penryn

    Apple fanboy

    Feb 21, 2012
    Behind the Lens, UK
    You get what you pay for. I have an iPhone 5 from launch day that is still perfect.

    If you want a cheaper iPhone buy last years model (or make me an offer in a few weeks:D).
  19. Daniel3102 macrumors 6502

    Jul 17, 2014
    IMO, its really the experience.

    First, you get the iOS experience, that you can ONLY get on an Apple device.

    Second, iPhones are a high quality phone that only Apple can really make. Sure you have android phones that look similar, but they'll never come close to the build quality of an iPhone.

    Third, and this goes with the experience, Apple has the highest customer satisfaction rate. Apple will do alot to make you happy :)
  20. blueroom macrumors 603


    Feb 15, 2009
    Toronto, Canada
    Make sure your $30 plan supports the iPhone. Most current iPhone plans with data cost >$65 here in Ontario.

    IMHO smartphone plans are expensive, plus most iPhone 5 models are going at cheap with a two year plan with data.
  21. Newtons Apple macrumors Core

    Newtons Apple

    Mar 12, 2014
    Jacksonville, Florida
    Cost of the phone is just the beginning. Have a feeling you would want a better plan, too!
  22. 12vElectronics macrumors 68040


    Jul 19, 2013
    Because people want iPhones, not Windows phones.

    It's like an old iPad commercial Apple use to air... People don't want Tablets, they want iPads.
  23. thetechfixer macrumors 6502


    Apr 21, 2010
    Are you in Canada? What phone carrier are you using?
  24. joshlalonde thread starter macrumors 6502


    Jul 12, 2014
    The cheapest plan with 50MB Data is 35/mo.
    If I get a tab, it's 35/mo. + $300 outright for iPhone 5c.
    I'm considering buying the iPhone 4s outright for $300 (a much better deal; though still more expensive than a phone should be)... would anyone advise me not getting an iPhone 4s? How's its battery life?

    Uh ya I'm in Ontario, Canada and go through Koodo (child company of Telus)
  25. Jazper macrumors 6502a

    Jun 16, 2012
    I've gotten into the habit buying mine used with Apple care still, gotten over £200 off doing this and most have had 9-10 months warranty still.

    Look around on ebay, worth saving some money.

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