Because the angle of the iPhone was not to be pragmatic or cheap.

The value proposition of something is not in what it already has in comparison to other items, but in what it offers that other items don't.

Let's talk about programming languages for example.

In APL [1] there are no loops, no keywords, but that is not the value proposition of APL.

It's value comes from the fact that you can think about complex programs very effectively and write complex programs in very short statements in a quick amount of time.

Let's also talk about luxury brands like Louis Vuitton bags/shirts. It's not that the buyers get those bags/shirts at 10x - 100x the price of a normal bag because they are stupid. They do that because LV bags/shirts are for signaling wealth i.e proof of riches not proof I am not naked.

Now lets go back to the iPhone what was it's value proposition. I would suggest they are the following.

1. The iPhone was aesthetically superior to other smartphones in terms of both the hardware & software. I believe this came from Steve Jobs's formal background in fine art and it's intersection with his interest in technology.

2. Over the years the iPhone has built a trust worthy reputation for the masses as "a device that doesn't suck". If you buy an iPhone it is very unlikely you will experience buyers remorse. I reminds me of the phrase corporate people used to say "No one ever got fired for buying IBM".

So, it is a brand you can trust, you can't say the same for Android, what brand, if sumsung? What model, they have hundreds.

If the masses buy a cheap android phone that freezes apps or sucks in touch response, they will generalized the sucking to all android phones and them being "cheap", they won't waste any time & money exploring the different hundreds of brands and models looking for the best android phone.

iPhones however though more expensive make sure the hardware & software are decent. And entry level iPhone will always better than an entry-level android phone. So consumers will trust it more.

3. It the third world it's a signalling/good or fashion accessory. I also heard in the USA kids in school are bullied for having Green Bubbles in SMS texts? [2]. So, the peer pressure among superficial adults & teens definitely drives sales.

The dynamic island for example is nothing more of a gimmick. It has no real technological value. But it's cute and fashionable to have a phone with a dynamic island.

I recommend you read Rory Sutherlands "Alchemy" if you want to understand more about branding. [3]

[1]: https://tryapl.org/

[2]: https://youtu.be/BuaKzm7Kq9Q?si=kd7FT6yeGwFUUumU

[3]: https://www.amazon.com/Alchemy-Surprising-Power-Ideas-Sense/...

> The vast vast majority of people are not "signaling" when they do things, they are just doing things.

I've read Sutherland's "Alchemy" book and that's not how I remember him framing signaling.

Long to short, while - to your point - we are not all intentionally signaling, we are as receivers of inputs are constantly looking for and translating random input into signals.

The point being, whether you like it or not, you're giving off signals. Be mindful, or not. But if you go with the latter then you might at times be doing yourself a disservice because we as humans self-generate signals.

https://www.amazon.com/Alchemy-Surprising-Power-Ideas-Sense/...

p.s. I enjoyed the book. His is a very counter "conventional wisdom" mindset. That appeals to me.