I am tired of same answer, so if you don't understand, so be it.
"Component cost reduced with time. It is most expensive at FCS release"
Last call for repeated answer.
Added: by the way, you are comparing 16G vs 128G, which is like mini with full size SUV, small orange with large melon, 1 bed room condo with 5 bed room top of hill mansion. Does not make sense at all.
The Op asked why do iPhones cost more than iPads, you mentioned because of miniaturization that is involved with the iPhone. This is not the case, the iPhone 6 was released Sept 19 2014 and the iPad Air 2 on Oct 22 2014. At that time the Build cost for the ($500 retail)16 GB WIFI iPad air 2 was more than than the ($950 retail) iPhone 6 Plus 128GB. This has nothing to do with component costs going down over time and has nothing to do with the items having different parts.
Components prices going down over time only weakens your argument as the iPad Air 2 was released after the iPhone 6. Every single iPad released has had a higher build cost (BOM)than the iPhone of that generation. The OP is comparing iPhones to iPads which are very different products. You than say you can't compare an iPad mini2 with an almost identical iPad air as the CPU has a different part number. The cost difference between the 2 cpu's was less than 1$. There are 3 reasons the mini 2 cost less than the air in retail and none of them were because of the CPU,
- Battery cost less as it was smaller
- the displays was far lower quality than the iPad air
- Apple used it's typical $100 price difference it uses between models, ie iPhone 6, 6+
Added: by the way, you are comparing 16G vs 128G, which is like mini with full size SUV, small orange with large melon, 1 bed room condo with 5 bed room top of hill mansion. Does not make sense at all.
I'm comparing the 2 because the cheapest iPad air 2 you could buy last year cost more to make than the most expensive iPhone 6+ model. This fact alone disproves iPhones cost cost more to by because they are smaller and the miniaturization required is more expensive. iPhones cost more because people are willing to pay more, people don't wants iPads like they do iPhones and iPad sales numbers have gone done quarter after quarter. It's pretty simple, it's called supply and demand.
https://en.wikipedia.org/wiki/Supply_and_demand