But the Android ecosystem also invests hugely in R&D, it's just spread over more companies. With consoles the primary justification was always that the hardwar

But the Android ecosystem also invests hugely in R&D, it's just spread over more companies. With consoles the primary justification was always that the hardware is sold below cost. This is purely to the benefit of the game developers, all the risk falls on the console maker, so they accept it for that reason. The iPhone is not only not sold below cost but its price has never fallen in the entire lifetime of the product, from what I recall.