Why does an unsubsidized iPhone cost $300 more than an iPod?
The iPhone 3G 8gb = $500 unsubsidized
iPod Touch 8gb = $200
Do the raw materials and the technical support costs for the mobile component in an iPhone really value at an the extra $300? What other costs are going into this (advertising too?)?
Comments
The best way to find out is to look at the iSuppli teardowns.
iPhone 3GS 16GB teardown: http://www.isuppli.com/News/Pages/iPhone-3G-S-Carries-178-96...
I'm having trouble finding a teardown with cost analysis of the iPod touch, but it seems like even with a 50% margin like Apple likes, it's not in the raw materials.
Seems simple: Because that is what the market will pay.