But there are other differences. As with the previous generation iPod Touch, they actually cut a lot of subtle corners. Sure, there is some margin in the iPhone related to the cell plan subsidy, but there are some real cost cutting measures in there too. I think a reasonable way to think about it is that with the iPod Touch there is a strong incentive to compromise on the subtle things that users don't notice; the things Jobs always claimed they never compromised on (total fib).
The iPhone 5 vs. iPod Touch 5 was probably the closest the two ever came, the Touch's processor was still running with the 4S's processor/GPU/RAM and the 4's camera, and the body materials weren't equivalent.
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The problem with the iPod Touch is that it highlights exactly how hefty the margin is on an iPhone.
64gb iPod = £249. 64gb iPhone 6 = £619.
If the only difference was GPS/Cell and a slightly larger battery it would hard to defend charging £370 for that.
But there are other differences. As with the previous generation iPod Touch, they actually cut a lot of subtle corners. Sure, there is some margin in the iPhone related to the cell plan subsidy, but there are some real cost cutting measures in there too. I think a reasonable way to think about it is that with the iPod Touch there is a strong incentive to compromise on the subtle things that users don't notice; the things Jobs always claimed they never compromised on (total fib).
The iPhone 5 vs. iPod Touch 5 was probably the closest the two ever came, the Touch's processor was still running with the 4S's processor/GPU/RAM and the 4's camera, and the body materials weren't equivalent.