You use the word "markup" implying that it is overpriced, when it isn't. The huge (unmatched) margins come from:

a) Economies of scale; b) extremely low number of models/SKUs; c) Decisions of investing early in a particular technology and then drink everything they can from it (See their investment in Aluminium, SSD-like controllers for iOS devices, designing their own SoC, etc.).

Basically, Apple only has those margins if they sell at least a particular number of iPhones. If Apple only sold, say, 10 million iPhones, they wouldn't earn 10 million X that "markup". In fact, due to how economies of scale work, they likely would lose money on each device being sold.

I didn't realize you were talking about the Google comparison and nothing more. If so, I apologize. Having said that, at flagship price range, iPhones offer a lot more value than similarly priced Android devices.

The difference is that guys like you might not see it because you don't value the ecosystem, but the market does.

I never had an iPhone (despite using a Mac and never going back to windows) but I'm "unlucky" that I have the unpopular opinion (just around here, the market agrees with me) that stock Android and Material Design are a huge pile of crap.

See all of that white space on AMOLED screens? See Google not even being coherent between their apps? See how pathetic all of those apps are on tablets? See how featureless Android is? Where's multiwindow? How many useful features has stock Android bought to the masses? 0. Everything in the last few years are nothing more than pathetic attempts to unify OEMs initiatives (Power saving mode, finger print scanners, Android Pay...)... Why? Because Google is more busy focussing on iOS.

That's just disgusting to me and makes me assume a very Pro-Samsung, Pro-Apple, Anti-Google stance. Despite the amazing fact that it is Google that is bringing computing to billions of people that can't afford iOS devices.