Originally Posted by Hellmark
As someone with experience with electronics design, sd cards really do not greatly effect price. When making a device like the iPhone it already has most the capabilities to handle SD cards so the only real cost is for the SD card slot itself which cost pennies. Relying on SD may be cheaper than using more NAND flash, depending on how it is implemented
The only reason why Apple does not include an internal SD card reader is because that would simply cut into the profit margins. They wouldn't be able to up trade you to go with a higher capacity model, and they also wouldn't be able to sell you an external SD card reader (yes, apple makes sd card adaptors.)
This. You have to understand Apple's corporate mindset. All their hardware is designed to lock users in to their system, that's the whole point. And it's working for them apparently.