There are costs that people overlook, or might not even make use. Previously my dad (who's basically tech illterate), kept getting talked into getting Nexus phones by the local carrier. And once he gets the phone, and he's got questions, the staff that sold him the phone would hardly extend the help.

I got him (and my mom) iPhones, knowing that they cost a lot (and in my eyes, overpriced) because once they both are on the same phones, he could walk into an Apple Store, and get issues resolved. They could share with one another about how to use the phone, etc...

If it breaks, he could talk to a person to sort out what to do, and get swapped with a replacement.

I sold an old Nexus 6 to a friend, and eventually an OTA update borked it. He was on the phone getting the run around to recover it.

I know I could work with a much cheaper phone, but for the use cases above, I'm not just paying for the R&D and the hardware and a margin on top, but the services and peace of mind.