On the services side of things, I pay Apple $8.50/mo for storage (split between family members, so really much less than that) for all of my photos and documents, and $7/mo for unlimited music (taking advantage of available discounts).

For hardware, an iPhone XR is only $30 more than a Galaxy S9, and though it's not quite an even comparison hardware-wise, that $30 difference buys you about 5 years of software updates, a suite of great creativity and productivity apps, servers that sync and back up, etc. (You can probably get some of that list from Google or Samsung, in exchange for your privacy.)

They could shrink their margins and have plenty, sure, but I'm not convinced that it's really such a bad deal for customers.