Status! IPhone's are a status symbols. All that matters to most common buyers is that they are physically different so that people know they have the new phone.
My 150 dollar phone is good enough but no one will care that I have one. If I had a new iphone, people would look twice and ask about it.
It's all about perceived social standing.
Apple is a marketing power house 1st then a tech one.
No, I won't be buying one.