Apple charges what the market will accept. It's business. Apple is in a unique and enviable position in their market. They are the only supplier of their products. If you want Apple products there is no viable alternative on the market. There is no downward pressure created by "other" Apple products. The Android ecosystem, on the other hand, has competitive pressures that can drive the market to a lower price point. You have multiple vendors selling essentially the same experience. If you don't want to buy a premium priced handset, you can very easily opt for a mid tier or budget handset and get a very similar experience. Android vendors have tons of competition for Android products. Apple has no competition for Apple products. With no competition there's no impetus to lower pricing. Until the market reacts negatively, expect no downward change in Apple's pricing strategy.