Why are iPhones more expensive than iPads?

[cfedu]

I am tired of same answer, so if you don't understand, so be it.

"Component cost reduced with time. It is most expensive at FCS release"

Last call for repeated answer.

Added: by the way, you are comparing 16G vs 128G, which is like mini with full size SUV, small orange with large melon, 1 bed room condo with 5 bed room top of hill mansion. Does not make sense at all.

The Op asked why do iPhones cost more than iPads, you mentioned because of miniaturization that is involved with the iPhone. This is not the case, the iPhone 6 was released Sept 19 2014 and the iPad Air 2 on Oct 22 2014. At that time the Build cost for the ($500 retail)16 GB WIFI iPad air 2 was more than than the ($950 retail) iPhone 6 Plus 128GB. This has nothing to do with component costs going down over time and has nothing to do with the items having different parts.

Components prices going down over time only weakens your argument as the iPad Air 2 was released after the iPhone 6. Every single iPad released has had a higher build cost (BOM)than the iPhone of that generation. The OP is comparing iPhones to iPads which are very different products. You than say you can't compare an iPad mini2 with an almost identical iPad air as the CPU has a different part number. The cost difference between the 2 cpu's was less than 1$. There are 3 reasons the mini 2 cost less than the air in retail and none of them were because of the CPU,

1. Battery cost less as it was smaller
2. the displays was far lower quality than the iPad air
3. Apple used it's typical $100 price difference it uses between models, ie iPhone 6, 6+

Added: by the way, you are comparing 16G vs 128G, which is like mini with full size SUV, small orange with large melon, 1 bed room condo with 5 bed room top of hill mansion. Does not make sense at all.

I'm comparing the 2 because the cheapest iPad air 2 you could buy last year cost more to make than the most expensive iPhone 6+ model. This fact alone disproves iPhones cost cost more to by because they are smaller and the miniaturization required is more expensive. iPhones cost more because people are willing to pay more, people don't wants iPads like they do iPhones and iPad sales numbers have gone done quarter after quarter. It's pretty simple, it's called supply and demand.

https://en.wikipedia.org/wiki/Supply_and_demand

 

[joeblow7777]

Well, even if they were launched at the same time, the material costs can still be different if they are coming from different manufacturers or through a different production line that yields less of one vs. another or something like that. There are many factors that go into costs/pricing.

iPad Air is improvement form iPhone 5s, but Mini2 is same design as iPhone 5s. iPad Air use Apple APL5698 A7 Processor improvement from 5s, iPad Mini2 use same A7 APL0698 process as 5s.
CPU, heart of product, is different.

You're both just over complicating the fact that Apple charges more for the larger devices because that's what people expect so they might as well do it. It's no different than them charging $100 difference for each step up in storage even though it doesn't cost them nearly that much. It's a simple pricing strategy: $100 for each step up, whether that's a step up in size or a step up in storage.

 

[C DM]

Seems like all of this has pretty much been hashed out in the first page of this thread some time ago, not sure what else is there to go on about really given that at best it just ends up circling to the same things that were already covered and dealt with before.

 

[maxsix]

I know that. However, that still would not make up for the price gap. It's been many years since cellular technology has been miniaturized, and that is not the reason for the price difference. The answer is that there is no reason. Apple charges so much because they can.

That's right, Apple is brilliant, they know their market well. Consequently the price of the iPhone is as high as the market will bear. Apple is the master at getting all the money.

 

[jasie02]

The Op asked why do iPhones cost more than iPads, you mentioned because of miniaturization that is involved with the iPhone. This is not the case, the iPhone 6 was released Sept 19 2014 and the iPad Air 2 on Oct 22 2014. At that time the Build cost for the ($500 retail)16 GB WIFI iPad air 2 was more than than the ($950 retail) iPhone 6 Plus 128GB. This has nothing to do with component costs going down over time and has nothing to do with the items having different parts.

Components prices going down over time only weakens your argument as the iPad Air 2 was released after the iPhone 6. Every single iPad released has had a higher build cost (BOM)than the iPhone of that generation. The OP is comparing iPhones to iPads which are very different products. You than say you can't compare an iPad mini2 with an almost identical iPad air as the CPU has a different part number. The cost difference between the 2 cpu's was less than 1$. There are 3 reasons the mini 2 cost less than the air in retail and none of them were because of the CPU,

1. Battery cost less as it was smaller
2. the displays was far lower quality than the iPad air
3. Apple used it's typical $100 price difference it uses between models, ie iPhone 6, 6+

I'm comparing the 2 because the cheapest iPad air 2 you could buy last year cost more to make than the most expensive iPhone 6+ model. This fact alone disproves iPhones cost cost more to by because they are smaller and the miniaturization required is more expensive. iPhones cost more because people are willing to pay more, people don't wants iPads like they do iPhones and iPad sales numbers have gone done quarter after quarter. It's pretty simple, it's called supply and demand.

https://en.wikipedia.org/wiki/Supply_and_demand

OP did not ask to compare IPad Air and Mini2.
Start another thread, and I will continue argue with you, if you want to invoke OP say.....

You have no idea what other people think in their mind.

End.
[doublepost=1452220894][/doublepost]

You're both just over complicating the fact that Apple charges more for the larger devices because that's what people expect so they might as well do it. It's no different than them charging $100 difference for each step up in storage even though it doesn't cost them nearly that much. It's a simple pricing strategy: $100 for each step up, whether that's a step up in size or a step up in storage.

We will have to ask Tim, because we are all guessing with no real fact on what exactly the reason Tim sign off on the price. We could all be wrong.

 

[cfedu]

That's right, Apple is brilliant, they know their market well. Consequently the price of the iPhone is as high as the market will bear. Apple is the master at getting all the money.

Pretty much this. If these rumours of an iPhone sales decline and smartphone market saturation turn out to be true, we might see an iPhone price cut.
[doublepost=1452222011][/doublepost]

OP did not ask to compare IPad Air and Mini2.
Start another thread, and I will continue argue with you, if you want to invoke OP say.....

You have no idea what other people think in their mind.

End.
[doublepost=1452220894][/doublepost]

We will have to ask Tim, because we are all guessing with no real fact on what exactly the reason Tim sign off on the price. We could all be wrong.

From the guy that says an iPhone 6 16GB with a 196$ BOM costs more to built than an iPad Air 2 16 GB LTE with a $305 BOM. Why?? Reasons!!! lol

There is no reason to ask Tim as Apple releases sales numbers every quarter. Any high school kid who has take a course on Supply and demand can tell you the reason.

iPhones sales growing every quarter price is high
iPad sales going down every quarter price is low.

 

[EdwardSmith36]

I think the reason is very genuine, it got many features unlike iPads, it is used for many other purposes which is not possible in iPad.

 

[cfedu]

I think the reason is very genuine, it got many features unlike iPads, it is used for many other purposes which is not possible in iPad.

Besides one handed use, which features are "not possible in iPad"?

 

[lbdesign]

Has anyone else noticed that if you compare similarly equipped iPads to the iPhone 7 series, that the iPhone 7 128MB costs more than an iPad Air 2 128mb+cellular, and an iPhone 7+ 128Mb costs more than an iPad Pro 9.7" 128MB cellular?
I find it hard to understand the component costs work out such that the iPad devices with their larger screens & batteries would cost less than the phones, unless it's a case of charging what the market will bear. Am I being too cynical?

 

[Ds6778]

My guess is Apple knows they can charge whatever they want for their phones and carriers will cover it up by way of financing. That would be a little harder to do with the iPad.

 

[lbdesign]

Well, that other thread devolved pretty quickly. ;-)
And many posters ignored that you CAN get cellular in the iPad. iPads are still cheaper when you compare a cellular-equipped iPad to an iPhone. iPhones have better cameras and 3d-touch, but iPads have pen capability.
Some gave the cost of miniaturization, but most think it's what the market will bear.
I think smartphones are commodity items now, but Apple markets them as luxury goods. Maybe I should just buy a cheap Android, and also some Apple stock with the money I save...

 

[Shanghaichica]

I suppose it's the cost of minititurisarion. However for me my iPhone is more valuable than my iPad and mac which is suppose justifies why I paid more for my phone (£819) than my iPad (£559) or my MacBook Air (£749).

 

[mrex]

if that is the reason, then the plus model should be less expensive?

i think it it just because they can. people cant live without a phone, but they can live without (new) ipad.

 

[T'hain Esh Kelch]

Miniaturization costs a lot.

 

[akash.nu]

There's nothing miniature in iPhone compared to the iPad. All the chipsets are of same size. The iPad is largely filled up with battery.

 

[Osamede]

Has anyone else noticed that if you compare similarly equipped iPads to the iPhone 7 series, that the iPhone 7 128MB costs more than an iPad Air 2 128mb+cellular, and an iPhone 7+ 128Mb costs more than an iPad Pro 9.7" 128MB cellular?
I find it hard to understand the component costs work out such that the iPad devices with their larger screens & batteries would cost less than the phones, unless it's a case of charging what the market will bear. Am I being too cynical?

You've caught on to the the pricing strategy.

The iphone is priced as a primary device. The Ipad is priced as a secondary device, as you still need to own a phone.

This is an artificial divide, as obviously they have crippled the cellular equipped ipads from functioning as phones. I remember when I owned a Samsung Galaxy tab S 8.4, I was shocked to find that it could be a "phone". Before that, as an Ipad owner I just thought tablets couldnt do that. But really the ipad just crippled by Apple. And then they play pricing games, I guess because the tablet market is more competitive?

 

[akash.nu]

You've caught on to the the pricing strategy.

The iphone is priced as a primary device. The Ipad is priced as a secondary device, as you still need to own a phone.

This is an artificial divide, as obviously they have crippled the cellular equipped ipads from functioning as phones. I remember when I owned a Samsung Galaxy tab S 8.4, I was shocked to find that it could be a "phone". Before that, as an Ipad owner I just thought tablets couldnt do that. But really the ipad just crippled by Apple. And then they play pricing games, I guess because the tablet market is more competitive?

Having phone capability in a tablet is just pure stupidity. Are you going to hold that giant device against your face to talk or put it on speaker phone all the time or use a headphone while holding it in front of you?

It's just impractical.

In fact a tablet doesn't need rear facing camera as well. People look ridiculous trying to take a picture with a 9.7" iPad. Forget about the pro models.

 

[Osamede]

You are making assumptions that everyone has the same use case. Worse yet, Apple is telling everyone that bluetooth headset is where it's at. Surely you can see how stupid your knee-jerk reaction is....

In my case, I discovered the use when I broke my phone, and I was able to use the tablet as a backup.

But especially in these days when phonewatches are on the rise, it would make as much or more sense to pair it to a tablet-size device than with a smartphone size one.

 

[Booji]

I takes a lot more engineering science to pack the same power into such a small area. Extra size of the plus mostly goes to the battery, and every single millimeter is maximised.

 

[laudern]

Having phone capability in a tablet is just pure stupidity. Are you going to hold that giant device against your face to talk or put it on speaker phone all the time or use a headphone while holding it in front of you?

It's just impractical.

I'm guessing that you never use the call forwarding feature on your iPhone which allows you to make and receive phone calls not only on your ipad but also your mac. I use it quite a bit on my ipad to be honest. Particularly when I'm browsing the internet, find out a phone number on a website and then call from the iPad.

Having said that I'd never ever buy a cellular ipad. Even if you could make independent calls, 1 phone number is all that I need.

 

[akash.nu]

I'm guessing that you never use the call forwarding feature on your iPhone which allows you to make and receive phone calls not only on your ipad but also your mac. I use it quite a bit on my ipad to be honest. Particularly when I'm browsing the internet, find out a phone number on a website and then call from the iPad.

Having said that I'd never ever buy a cellular ipad. Even if you could make independent calls, 1 phone number is all that I need.

I do use it on both iPad and mac but that solution is already there. Don't think that's what was meant in the last comment.

 

[TrueBlou]

There are many factors which we, the rambling public, don't get to see and rarely if ever even consider when it comes to the design, testing, development, marketing and so on and so on.
Really it costs Apple billions every single year to develop the iPhone. In general the iPhone and associated chipset are developed first, the iPads follow on from that. So while there are still billions involved in the development of the iPads, the costs are probably a little lower as the main work on designing the silicone has already been done.

But most importantly of all, the absolute deciding factor when it comes to setting out the prices, is relatively simple... Because they can

 

[Jayson A]

iPad doesn't have 3D Touch, raise to wake, and has a worse camera. A lot of features are reserved for iPhone.

 

[mrex]

Neither did iphone 6 have 3Dtouch but it was as expensive then as iphones today.

Software features arent calculated increasing the cost of the device and im quite sure that the cam doesnt cost much more...

If they dont make money by selling expensive iphones, what would be left? What other significant incomes have they?

 

[freepomme]

People would buy an iPhone for $2,000 if Apple sold it for that.