General Question

SquirrelEStuff's avatar

Why does an unsubsidized iPhone cost more than iPad?

Asked by SquirrelEStuff (9178points) December 27th, 2014

The full size iPad is more expensive than the iPad Mini. An iPhone cost more than both.
Why does a smaller iPhone that is bought a full price cost more than a much larger iPad?

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8 Answers

elmillia's avatar

Are you referring to buying the iPad outright from Apple? Also, are you comparing the same storage size? Is the iPad in question Wifi only, or does it have 3G/4G connectivity?

SavoirFaire's avatar

The phone itself does not cost more than the iPad or iPad Mini. What you are paying for is the opportunity costs of Apple selling you an unlocked iPhone. You’re not strengthening their relationship with a partner company, you’re not winning them any kickbacks from that partner company, and you are getting an iPhone with more directly available features by getting it unlocked (which Apple has consistently struggled against). Those are things they’re going to make you pay for (and reasons to consider how badly you want an iPhone).

It’s also worth considering that technology is a market that tends to favor small over large and more software over more hardware. The iPhone is smaller and can do things that the iPads cannot. So as far as the device market goes, many people are going to see it as a superior product. “Bigger is better” has never been a very good rule for judging anything—despite how many people seem to be stuck in that sort of thinking—but it’s especially inapplicable to the technology market. We moved on from ENIAC for a reason. No one wants to carry around an 1800 square foot calculator.

bomyne's avatar

<delete this post>

dappled_leaves's avatar

Because prices are dependent on what the market will bear, not on the technology per se.

hominid's avatar

relevant: this and this

johnpowell's avatar

This isn’t really a Apple thing. If you buy a unlocked Galaxy S5 you are still looking at 500+ dollars. And their flagship tablet, the Samsung Galaxy Tab S is 350.

One thing to keep in mind is phones have lot of regulations that tablets don’t. Things like e911 and FCC rules about proper use of the spectrum and interference. And phones have to apply and comply with every rule from every country they are sold in. Wifi on tablets is largely unregulated.

elmillia's avatar

Tablets do have to comply with those regulations if they have 4G capacity.

But I had a look at the Australia prices of the Galaxy Tab S compared to the Galaxy S5.. Both 16GB and both 4G (unlocked. Not from a carrier)... and the Galaxy Tab S was STILL cheaper.

johnpowell's avatar

And a iPad with 4G is a extra 129 bucks over the wifi only version.

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