Originally Posted by EarlyMon
I agree and respectfully disagree.
A 16 GB iPod Touch retails for US$200.
Now, add a phone radio transceiver, extra antennas, NFC, an sd card slot, upgrade the screen, and then explain how those few changes total an additional 250% price jump. Even with the processor and other esoterica.
I think that the subsidized retail price has been used to jack up the retail price, for all phones.
The market will bear a $200 media player and it's profitable.
The market will bear a $650 phone and it's very profitable.
The iPod touch has always had cheaper components (or completely absent) compared to the iPhone exactly because very people would pay the $650 - $130 (iPad radio) for a contractless iPhone without the phone.
The iPod Touch is generally similar to the iPhone. The iPod Touch lacks some of the iPhone's features and associated apps, including the built-in compass, but is also thinner, lighter and less expensive. Older models also lack IPS display technology, speakers, microphones, and cameras, and the camera has never been as high quality as on contemporary iPhone models. Until the fifth generation, the iPod Touch camera lacked a flash for low-light photography, and until the fourth generation the sleep/wake button was on the opposite side. Steve Jobs once referred to the iPod Touch as "training wheels for the iPhone".