A big reason why people buy iPhones is the Apple ecosystem and status signalling. A $300 Xiaomi phone also isn't as good as a flagship iPhone, but it's ~90% as

A big reason why people buy iPhones is the Apple ecosystem and status signalling. A $300 Xiaomi phone also isn't as good as a flagship iPhone, but it's ~90% as good for 1/3 the price. For people who spend several hours per day on their phone, it isn't irrational to buy an iPhone. Americans spend on average 5.4 hours per day on their phone. Over two years, the savings from a Xiaomi phone come out to less than 20 cents per hour use. For these people it may well be worth the 20 cents for an hour of better phone experience. I think Samsung should be way more worried than Apple.