iPhone.

Here is why:

Apple made around $150 billion on selling iphones in the past year. They have an almost impossibly large war chest to develop the best product, coupled with that equally large incentive.

A company like Vertu, who makes $15,000 phones, simply cannot compete. In fact, until they rolled out android, Vertu phones were horribly, laughingly, terrible. Because how on earth could a comparably crappy little company like Vertu ever compete with google or apple at writing the millions of lines of code, with thousands of man years of effort, necessary for a solid operating system? There is a reason you can count the number of competitive operating systems on one hand.

So how is this different than Bugatti versus GM? Silicon and software. In the world of high tech, you're either Intel or Microsoft.

Intel works like this: Spend billions to make a plant to chase the latest nanometer limits on chip fabrication. When you're done, you can roll out one chip, cheaply. So everyone gets the same chip, and you might cripple some versions to sell for lower end markets.

Microsoft works like this: Spend billions writing lines of code. When you're done, you can roll out the new product, cheaply (almost free to copy code). So everyone gets the same product, and you might cripple some versions for low end markets.

In both cases, Intel and Microsoft have a choice. Do they target the highest end, where a new processor might cost $10k and a new version of Office $10k? It runs out, the mid range product is the real gravy. If new cpus cost $10k, Intel could never recoup their R&D. So they sell a product that can hit almost everyone, with a tiny bit better version for the top end, and a tiny bit worse version for the low end. The same with Microsoft.

So anyone that wants to make a better chip than Intel, and charge more, would now have to spend as much or more on R&D as Intel, but they would now be limited to a narrow segment of the market. Impossible. Anyone who wants to make a better MS Office, would need to spend more than the billions Microsoft spent developing their product.

In the tech world, the middle class rules and the rich can only buy slightly more ram, and better service plans, along with their jewel encrusted accessory cases.