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That's what happens when you compete on price. Nobody is going to pay an extra $50 for an Android phone over another comparable Android phone.

Samsung alone outspends Apple on marketing. Samsung needs to continuous battle against the other Android phones.

If you want an Apple phone either you pay what they are asking or you don't get it.

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Apart from Apple, the other company that was doing well at capturing profit from Android phones was Samsung -- e.g. this link from 2012 when the S2/S3 were selling well [1].

I believe the rise of Apple's profit share correlates with the rise of cheaper Chinese phone manufacturers like Xiaomi who operate on much thinner margins than Samsung.

[1] http://www.digitaltrends.com/mobile/how-apple-and-samsung-co...

Post-Xiaomi, a potential Samsung buyer could think about a cheaper replacement -- functionally Xiaomi is still Android, after all. Sure, an Apple owner can "go Android" too, but imho p(Samsung to Cheaper Android) > p(Apple to Android).

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