Why shouldn't Apple?
This is a capitalistic society. Each company creates a product, decides the price to charge, then leaves it to the market to sort it out for themselves. The consumer chooses at the end of the day how he wants to spend his money. Nobody is pointing a gun at his head and forcing him to buy an Apple product.
From its sales, Apple has shown that outstanding design and integration can drive markets, moreso than price and specs. Yet instead of trying to study and understand this phenomena, people just choose to dismiss, even deny and denigrate it.
Go figure.
That's all well and good. I'm an iPhone user of approx five years so I'm not denying the attraction of these devices. However, from my own standpoint they're living on former glories. I used to happily pay more for a better quality build and software that 'just works'. These days though, rival devices have the same build quality, iOS software is no less buggy than Android, and no less laggy than Android. Hardware-wise we get old tech LCD screens, a paltry & it must be said insufficient amount of RAM, big chunky yesteryear bezels and the entry level devices come with a miserly 16GB of storage space (with no facility to expand it). Look at the competition...most have entry level storage of 32GB and trading up is good value for money, not the $100 Apple charge. They pack plenty of RAM, have the latest tech displays and cutting edge design when it comes to bezels etc. Apple used to be the King of making unfeasibly small devices but now all they can do is 'thin'.
If I wasn't immersed in the Apple way and heavily invested in their ecosystem, I mean if I was in the market for my first smartphone I'm pretty sure it would be an Android device. Far too many of us rest on our laurels and continue to read from the Apple gospel but really, the latest iPhones aren't their best work. Not by a long chalk.