I'm not getting this whole bit about iPhones being more expensive. Are the people saying that living outside the US, perhaps?
The latest iPhone subsidized by carriers (which is the usual way Verizon, AT&T, and Sprint do it here) is the same price as the high-end new Android phones. And the previous version of the iPhone is the same price as (or sometimes cheaper than) the low-end Android phones.
In countries outside of the US, those carrier subsidies either do not exist or do not subsidize so much of the device. So, to buy an iPhone in another country, you generally have to pay for more of it up front. Which is why Android is huge in China, as the handsets are not subsidized at all and most cannot afford, or refuse to pay for, an iPhone when Android alternatives are just as good and cheaper.
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