Well explain how other companies manage to pack 2GB of RAM, more internal storage (32GB instead of 16GB), 1080p displays instead of 750p, stronger CPUs etc in Android phones and still sell them for the same price as the iPhone (or less)? Just stop try to justify the price of the iPhones! It's great phones but they are simply too expensive by today standards.
Because they sell their devices at break-even prices and make their money in other ways.
You want to continue thinking these companies are altruistic and being nice to you - they're making their money. And if you can't readily see where, it probably means you don't want to know.
Apple is a hardware company. They make money selling hardware. Their iPhone margins are in the 35-40% range. Healthy but not gouging.
iPhones don't cost anymore than other top tier smartphones from Samsung, LG, Sony, HTC etc - i.e. other hardware companies.
Companies like Google can sell their Nexus devices cheaper because they aren't trying to make money off them. They make money through advertising and customer information. Amazon sells at break even because....well they don't really make much money - but their pricing model is based on content/Prime.
And these Chinese companies make money on low-cost phones by employing sweat shop workers and paying them inhumane wages. They also aren't distributing the devices world-wide so they have much lower logistical costs and generally have a lower build quality.
By the way - iPhones have some of, if not the best, CPUs and GPUs on the market by benchmarking standards. Their displays, while sometimes lower in resolution, are some of the highest quality displays on the market. And the devices are always very well-built.
EDIT: I just realized I'm arguing with a person who's screen name is "cracksoup"......