Desirability and ecosystem
iPhones adhere to the golden rule of 'desirability'. Most people are not technically minded. Most people who buy iPhones are 'herders' who see that Posh Pete has one (Keeping up with the Jones's syndrome). iThings are all about the ecosystem and saying something about who you are (be that a prat in a suit, black polo neck and skinny jeans or 'bling' and baseball cap casual wear).
iPhones are not sold on how much geek factor they have. But how much you want to be like your peers.