Apple is a high end consumer product company. They don't make cheap (price) electronics.

If you are wondering why the phone cost just as much as a laptop or tablet that does much more, its simply cause they can and people will buy it. You don't need an iphone or any high end phone. Most of the time I just make calls and text on my phone but now I've downloaded every micro-transaction game in the app store and it occupies all my down time.