Nic, good question.
I asked Michael Archer who did our How a Security Camera is Made video, and he commented:
"For IP camera the SoC is more expensive, absolutely, it’s got an ARM chip inside for starters. All IP cameras pretty much now have an ARM on the silicon. So you have in essence a Linux based mini Computer running which needs, flash memory for Firmware, you need static memory also.
There is also things like PoE interface board all needing a few $$ cost. Interface connections. Battery backup. Network interface. And support for sub systems, if using all those extra things.
And someone somewhere has spent time money and effort to programm an IP camera and wants his ~50 cents for sure. And you bet there is license fees on the silicon to pay for any patients on any elements, which are built into costs of the device.
At best an IP board as seen on the IPVM making a camera video shows a single 38x38mm board, but additional the PoE board is separate. And the complicated board has both sides populated pretty packed."
The other thing I would add is that almost manufacturers recognize that IP camera buyers are less price sensitive than analog so they tend to markup prices higher.
Does anyone know if Analog HD cameras have Linux-based mini-computers in their SOC?