» New low-end iPod touch

Same screen as the high-end model, 16 GB, with no rear-facing camera or no lanyard — $229.

Apple has such flexibility with the iPod line because it basically has no serious competition (other than smartphones). With the iPhone, however, they don’t have the flexibility to remove basic features to make a low-end device. Other than making it plastic and lower capacity, I struggle with conceiving how they make a lower-cost iPhone.