Why are iPads always cheaper than iPhones?

The iPhone is a suitable product for most users. Photo: SCMP .

A basic iPad 11 starts at $349 , while Apple's cheapest smartphone currently, the iPhone 17e, starts at $599 in the US. In Vietnam, the prices of the two devices are 10 million and 18 million VND respectively.

There's a reason behind Apple's pricing strategy for its products.

The iPhone is an indispensable device for hundreds of millions of people. It's the phone they use for texting, online banking, taking photos, working, and entertainment on the go. In 2025, Apple sold 251.7 million iPhones, generating $209.6 billion in revenue, equivalent to an average selling price of $833 per device, a significant increase from $669 in 2020. Users are willing to pay more for iPhones, and Apple is capitalizing on this very well.

Conversely, the iPad doesn't possess this advantage. While it can do almost everything the iPhone can do, the tablet isn't a must-have device. In 2025, Apple sold 59 million iPads with $28 billion in revenue, equivalent to an average price of under $480 per unit. With lower demand, the potential for price increases is limited.

The internal space of a phone is much smaller than that of a tablet, a major factor determining cost. Apple has to cram a high-speed processor, camera module, large battery, cellular modem, and antenna into a thin body. Each component must be miniaturized and optimized to fit into that tight space. The cost of materials (BOM) for the iPhone 13 Pro in 2021 is estimated at around $570 .

The iPad Pro uses the M5 chip, equivalent to the MacBook, and features a dual OLED display, but only has a single camera and comes with cellular connectivity options. The estimated BOM (Bill of Materials) for the 12.9-inch iPad Pro in 2021 is $510 , lower than the iPhone Pro despite its much larger screen. The more affordable mainstream iPads are even cheaper, as they still use LCD screens instead of OLED.

Pricing also reflects Apple's strategy. The company hasn't increased the starting price of iPhones for years, but has quietly raised the average selling price by adding more expensive Pro versions. Installment plans from carriers also contribute to making the price more affordable. Conversely, the iPad doesn't have a similar mechanism, so it can't apply that strategy.

This also explains the difference in the high-end segment. The 11-inch iPad Pro M5 starts at $999 , the same price as the iPhone Air. In this segment, the price difference between the two product lines almost disappears. However, in the budget segment, the iPad is still significantly cheaper than the iPhone, and this is a deliberate decision by Apple.