Why does the iPhone 5 cost so much more than the iPod touch?

They're both available in 16GB/32GB/64GB yet the unlocked iPhone 5 cost $649/$749/$849 when the iPod touch is only $229/$299/$399. I thought the iPod touch was "The iPhone without the phone." Why is it $420-$500 cheaper?

Because it's a phone? This is a really dumb question lol. It comes with a better camera, more functions, 4g, and obviously the newer phone is going to cost more…

Because people are willing to pay that much.

Because its apple…

Because its a cell phone, ipod isn't

Cuz the iPhone 5 is better

Idi*ts, everywhere…

1- The most expensive part of a phone is the wireless radio that allows it to work as a phone.
2- Since most people get their phone below retail cost by a signing a contract with their phone company, Apple (among other cellphone manufacturers) feels it can get away with charging more than the phone is really worth. They charge as much as they think the phone companies will be willing to subsidize. Currently that amount seems to be about $500, leaving with the customers with a $200-ish pricetag that they seem to be willing to pay.

I think it may be cause

1) iphone has more features, and more features = more stuff goes into it like hardware, engineering, more batter power and so on. That costs a lot, leading to more expensive price.

2) iphone is bought and used through a contract with a mobile carrier company right? That could be another reason.

since there's no 3G/4G on ipod touch it costs less… Maybe.

3) it could be a market strategy.

iphone is sold more and is more popular than ipod.since iphone has a greater value than ipod now.market shares show that iphone sales has increased at an explosive rate.

4) oh and… This is more of a criticism of Apple but all Apple products are expensive. Have you noticed? Compare iphone to android.

compare macbook to Dell, IBM, VAIO, Samsung, lenovo, etc.

you will clearly see a difference.

Because the iPhone 5 has the cellular antennas and a few other better stuff. It's not going to be $229 for even an iPhone 4, so you can forget that price in the current iPhone market.