And you are also wrong about the price. The iPhone is not more expensive than other phones. Besides, most people don't buy a phone here, they take a contract with a provider.
So it's a little less salty.
Despite the strength of the iPhone brand, there's still a significant chunk of the market that really "doesn't care" and just wants a phone that works. Sure they'd be happy to have a camera and all the rest of what a smart phone offers but they're cautious about increasing their monthly bill with data charges and, first and foremost, just want a phone. You can sell this type of consumer an Android phone quite easily, even if they came into your store asking for an iPhone.
Meanwhile Apple made the "mistake" of pushing their vision of user experience all the way through consumer. To do this they dictated terms to telcos on how they distribute iPhones, and broke long established conventions built up with Nokia, Motorola, Sony Erikson and others about the distribution process, and questioned the role of the telco in that process. That left telcos scared of a future where Apple is their dominant supplier. So they fixed it.
IMO that's where these numbers are coming from.
From Q3 2010 -> Q3 2011 iOS went from 13million to 17million. Android went from 20million to 60million.