Re: It's not just Apple
There are two paths for smartphone peddlers these days.
1) Sell plenty of cheap phones, use the sheer volume of sales to make up for loss in profit margin per unit sold. Can't beat the Chinese phones with this strategy now.
2) Sell a small number of expensive phones to your 'captive customers' (loyal fanboys) who tend to be more price inelastic. Maximize your profit margin per unit sold. You need to have an established, sizeable market share to execute this strategy.
There is no middle ground. Also, Apple's 'premium' branding makes #1 quite impossible. On the Android camp, only Samsung could afford to do #2; its cheaper A-series and J-series Galaxy phones also face fierce competition from Chinese phones. Other Android phone vendors are struggling, caught between #1 and #2.