[coryfklein]

This doesn't seem quite so obvious to me.

1. Do we know what the contracts between Verizon-Apple look like? Verizon may get discounts for buying in bulk or for being a strategic partner.

2. Cell providers (like Verizon) may be funding OP's iPhone 12 with the monthly-payments of other customers that don't exercise their ability to upgrade their phone exactly every 24-months. I think this group may actually be rather large.

3. Interest rates for financing your iPhone via your cell provider's 2-year contract plan are likely lower than financing an iPad on a credit card or other third-party financing.

All of the above likely combine to make the iPhones proportionately cheaper than iPads, possibly significantly.