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It cost Apple about the same to make an iPhone, FYI. Except Nokia is jacking up the retail price to 3x's that amount and they aren't making carriers prepay for how many devices they think they can sell.

You're saying, Nokia/Microsoft are lowering the cost? The phone cost $450 retail. Why can't you say its the carriers working with Nokia/MS to subsidized more of the cost.

Carriers can choose to subsidize as much of the cost of any phone they sell, including iPhone. Carriers know they can sell iPhone at the contract cost and could go higher if they wanted too. Cost isn't that big an issue. Verizon reported that even after they got the original iPhone 4, they were still selling more HTC Thunderbolt's which were 4", 4G phones that were $299 on contract.

Nokia likely pushed ATT into lowering the cost to, as you say, help Windows Phone get into the market. But price isn't the only way to win a war. You also have to have a worthy opponent and the Lumia 900 kicks many phones butts with dual or quadcore processing and in style and design.

So much for no one will want a Hummer like phone theory...Aye!?

Your price list shows what I been saying about Apple price gouging on flash. Look how much Nokia is paying for it...$27.00 just for 16GB? I can buy 32GB for that same cost or actually lower @ about $25.

So why does Apple charge $100 for it? The 8GB iPod Touch was lowered to $199...to go from 8GB to 32GB is $100. That is still a bit high. It should be about $50. To go from 32GB to $64 is another $100. It shouldn't be higher than $75. If 16GB is 27.00 then we can assume that 8GB is only 1/2 that. Look at all the extra money Apple makes from selling the device...and yet they sell it at 3x's what it cost to make the device.

The iPhone on retail should cost about the same as this device...based on its high sales numbers and market saturation, the device is not worth more than $599 retail for the most expensive model yet it cost nearly $900.

Its nice to see how Windows PC's and smartphone costs put Apple pricing in perspective and show for the limited capabilities they offer, they really aren't worth what they cost. I certainly won't be buying another iPhone, replacing my 4S with an iPad. At least the iPad is cheaper...which amazing that the iPad which is nearly 5x's the size of iPhone cost far less on retail. Something is wrong with that math.

QUADICON, on 12 April 2012 - 05:56 AM, said:

Because they can. Because people, including YOU, will still buy it. If Nokia could get away with it they would do the same thing.