Added value : more than downloadable apps.
Can't speak for anyone else. Just me.
I'm in the enviable position that when I consider a purchase I don't have to look at the price alone. 'Is it really necessary' is a relatively moot point. If our spending pattern was driven by necessity we would all be driving Fiestas, live in a chicken coop and survive on bread and water. Because, really, most of what we spend our hard-earned on is ultimately 'not necesary', as in 'if you don't you die'. YMMV. You get the point.
So we could argue that most of what we purchase is a luxury purchase. You don't 'need' a desktop if you own a half decent laptop, you can read books from you library, and you can sit down and make article notes on recycled paper. You don't 'need' a Galaxy S12 wit dropthings an speech recognition.
But we strive to make our lives more comfortable with all kinds of gadgets and stuff that fall in the 'not required for breathing" categories, and derive a certain amoint of entertainment and joie de vivre from all manner of gadgets.
When I buy these gadgets I generally son't mind paying over the odds because I find a phone 'nicer' than another one, or get a car with a bigger engine because of some very subjective notion of it 'driving better' than the Fiesta. Ultimately, my average speed over a year would be exactly the same in the Fiesta than in the big Benz, and believe it or not, the Fiesta is dry inside too.
Now, as I said, i don't mind baying OTT, I don't even mind gving in to my repressed 'fanboi' every once in a while, but when I do I expect to be treated accordingly. I don't mind paying for an iPhone, but when I go to their store I expect them to have all varieties in stock for me to take away, I expect to pe spoken to and not at by a salesperson with produt knowledge and an elementary notion of manners, and when something goes awry (and it inevitably will) I expect to be treated with the service onbe expects from a premium brand. I also expect said brand to be of better quality than something osting a quarter of the price.
(Note : I use the Apple brand as an example here. You may insert any vendor you wish)
But when I do pay a premium, and I am not listened too, lied to, the sales drone walks off in the middle of a demo, subsequently receive a product that is seriously flawed (AND I'm accused of 'holding it wrong), get dismal warranty coverage and am charged silly prices for repairs because 'I must've dropped it', there comes a point when I am no longer prepared to pay the premium.
And this, IMO, is what everyone is started to find out : the ads try to sell you the idea that you are an upmarket, valued customer, but one the sle is made it turnes out you're just an average slob parted with his/her money and no one has any further interest in you.
So, manufacturers of premium brands : premium does not mean 'more expensive'. It means 'better than everything else'. In EVERY department.