Quote:
Originally Posted by jswinden
The unlocked iPhone 16GB model sells for $649. If Apple sold this without a phone radio, it would still be for well over $500. I doubt any of us would pay between $500 and $600 for phoneless iPhone labelled as an iPod touch! I seriously doubt you could even find a used and working iPhone 4 or 4s for the price of an iPod touch (which currently sells for under $200). I'm guessing a used iPhone 4 or 4s will be at least twice the price of the touch. It is simply not worth that amount to be used as an iPod only.
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It sells for that price because Apple gouges its customers.
iSuppli has the BOM + Mfg for the 16GB iPhone 4S at $196. Sell the 16GB for $249 and the 32GB for $299; and Apple still makes a tidy profit.