Why does the Apple iPad cost less than the iPhone? What is the primary reason for the cost difference between the two devices?
 For example, in my country the newest iPhone (iPhone 8) costs about $1,070 at the lost configuration (normal size, 64gb), while the newest iPad (Just the generic iPad, no cellular) costs less than half that at around $465. This is a significant difference.

It may seem rather naive to assume that the larger device would cost more. And I do realise that the current iPad has a slightly older processor than the iPhone. But the iPad does have both a larger screen and battery, amongst other costs. Is it based on the manufacturing price, or is it more to do with the market and how much people are willing to pay?
There are a few factors to this.

The iPhone 8 has lot newer technologies inside it the the iPad 5.


A11 Bionic CPU vs the A9 (used on the 6s)
True Tone display
3D Touch
Better LCD used for display (supports P3)
The iPad 5’s LCD isn’t even laminated to the front glass
and a lot more changes


Even though the iPad 5 is released in Q1 2017. It is using technologies that dates back to 2015. A more fair comparison would be the new iPad Pro announced in WWDC17. Which costs similarly (just a little bit less than the iPhone 8). If you want to compare the 5th generation iPad with something, that would be the iPhone SE.