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That average price includes phones of low specs and high specs, while Apple only does high(ish) spec. The Samsung Galaxy is similarly priced to the iPhone. The

• JohnTHaller 11y ago
  Apple only does premium phones whereas Samsung et al do premium as well as mid-market as well as down-market devices. The iPhone is basically always more expensive than the equivalent Samsung Galaxy device. The Galaxy S6 is currently $549 for a 32GB version with a high-res 5.1" QHD screen (better than 1080p). The semi-equivalent iPhone 6 is $649 for a 16GB version with a mid-resolution 4.7" screen (approximately 720p) is a full $100 more expensive than the S6. Upgrading the iPhone to the next memory size up (64GB) adds $100. Upgrading to a high def screen (6 Plus with a 5.5" 1080p screen) is another $100. One big reason Apple makes so much more profit than everyone else is that they sell lesser specced phones for a higher price than the competition's higher specced phones. Most people think of the iPhone 6 as being equivalent to the Galaxy S6 despite having a smaller, lower resolution screen, 1/2 the storage space for music and pictures, slower processor, etc.