The issue is longer replacement cycles. Not cost. On almost every category they compete, apple has the best selling products.

iPhone models are probably 5 out of the 10 best selling smartphones each year.

An iPhone XS Max, for example, is accessibly priced for a device with unmatched hardware (SoC, Taptic Engine, design techniques like folding the display at the bottom), unmatched ecosystem, 5 years of updates and battery replacements for cheap that can easily extend the longevity and usefulness of the device without any issue of up to 7 years.

It’s something that people will use every day, for years and years, many hours per day.

Every single company that focus on cheaper devices doesn’t have a better business. There’s no incentive. It’s the way it is.