Why is the iPhone so expensive?

joshlalonde

macrumors 6502
Original poster
Jul 12, 2014
422
0
Canada
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?
 

xmichaelp

macrumors 68000
Jul 10, 2012
1,806
625
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.
 

BenTrovato

macrumors 68030
Jun 29, 2012
2,849
1,871
Canada
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.
 

xmichaelp

macrumors 68000
Jul 10, 2012
1,806
625
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.
 

Deeds500

macrumors 6502
Aug 22, 2014
312
467
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?
Therein lies your answer. Millions of people want the iphone. Demand.

----------

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.
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.
 

simon48

macrumors 65816
Sep 1, 2010
1,315
88
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.

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

aneftp

macrumors 601
Jul 28, 2007
4,247
463
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!
 

juanrp

macrumors 6502a
Jun 14, 2014
591
40
Florida
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.
 

alice04

macrumors regular
Feb 15, 2013
136
1
You can really compare iPhone from Windows phone. That's why iPhone is expensive than other brands.
 

cube

macrumors P6
May 10, 2004
16,437
4,449
Because what carriers care about is making you believe you get a great deal.
 

Gentile

macrumors regular
Apr 29, 2007
191
4
Ohio
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.
 

radiologyman

macrumors 6502a
Jul 23, 2011
632
174
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.
 

AppleFanatic10

macrumors 68030
Nov 2, 2010
2,560
135
Hawthorne, CA
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?
Yea, eBay or something like that.
 

ron7624

macrumors 68020
Oct 14, 2011
2,228
437
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.
 

boast

macrumors 65816
Nov 12, 2007
1,369
739
Phoenix, USA
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...
 

Ed Miliband

macrumors member
Aug 27, 2014
51
0
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.
 

Apple fanboy

macrumors Nehalem
Feb 21, 2012
32,775
22,624
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).
 

Daniel3102

macrumors 6502
Jul 17, 2014
254
1
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 :)
 

blueroom

macrumors 603
Feb 15, 2009
6,374
25
Toronto, Canada
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?
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.
 

12vElectronics

macrumors 68040
Jul 19, 2013
3,926
1,214
California
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.
 

thetechfixer

macrumors 6502
Apr 21, 2010
267
0
Canada
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?
Are you in Canada? What phone carrier are you using?
 

joshlalonde

macrumors 6502
Original poster
Jul 12, 2014
422
0
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.
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)
 

Jazper

macrumors 6502a
Jun 16, 2012
644
34
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.