It is not ridiculous that phones cost way more than tablets. Phones are smaller. It is both difficult and expensive to fit all the components inside them. The PCB is a lot smaller in size, so we have to use more layers. Because space is so precious in phones, we need to make sure that we utilize every millimeter-square of it. Thermals is also more difficult to manage in phones because components are packed more closely together. Supporting voice calls requires RIL validation from carriers and more. There are also others issues...,
We can sell you 7-inch phones for $229, but you probably won't like them.
Thats all R&D Cost, wouldn't the manufacturing cost be less for phones because of less material, small screen, etc.
I know that R&D cost is high initially, but once a company have a phone developed, wouldn't the cost of the R&D on the next phone model come down? Since the company would have the OS and other parts already tuned? The Chinese are able to bring out devices at lower price in that "small space". Now they are even planning to come out with SD800 chips.
I think it's ridiculous that tablets cost $200-300 and phones cost $500-600. Seriously, what the hell. All I want is a $200 phone with the specs of a $200 tablet.
Cellular radios and GPS aren't free. When you're quoting that $600 phone you've got cellular capability and GPS in a flagship level device. That $300 tablet is a mid level device without radios and GPS. Flagship level tablet with radios and GPS? Yeah, that starts about $600.
You want a new $200 phone? It exists, grab a Moto G for $179.