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.
You are not just paying the extra money for the additional hardware, you are also paying for the R&D costs "which are a substantial amount, top flight engineers are not cheap" and marketing costs, which are much higher that an iPod.