I can't speak for anyone else but I certainly have never bought an Apple product to prove I can afford it. In emerging markets -- where the average buyer can't afford more than a cheap Android phone -- there might be some truth to this but in the US, iPhones aren't exactly "exclusive."
I'd agree that throway's case was overstated. That said, Apple has built up its brand as being one of "quality" and "high end." It's a similar brand perception as Cadillac. If you have one, people assume you have the money to afford nicer things. That happens whether you bought because of that or not, and Apple knows this. If they start competing on price, they will sooner lose their luxury status.
I don’t think if you see someone with an iPhone, you assume they have the money to buy nice things. I think the image Apple has built up works in the opposite way. If you see someone without an iPhone, you assume they only bought that product because they couldn’t afford an iPhone. That must be the only reasonable explanation, you think, because who would willing buy another brand (due to the perceived difference in quality).
They don't have to be exclusive to appear exclusive. You can find the same conversation popping up all the time about people being snobby about the color of their chat bubbles. "Think different" may as well mean "think like everyone else" today, but the company is built on that messaging and people eat it up.
I can see why it seems that way, but most people stick to Apple due to lock-in.
For me, it's Apple music. I've been using iTunes since the first iPod Nano and have an extensive library. I was planning to switch to Spotify (since the android Apple Music app is abysmal). But Spotify doesn't allow you to upload your own music (lots of mixtape songs in my library).
So eventually, I gave in and went back. I even tried Google Music since they let you upload your own songs, but the sync app kept crashing and never uploaded songs right away, but your milage might vary.
So that is Apple's play, locking in customers. I know friends who came back to Apple due to iMessage and even the Apple Watch, which is a blatant lock-in product.
Where you see lock in, I see a well functioning ecosystem. The Apple Watch is probably the best product in its category. Same with iMessage. By all accounts I've read, AirPods are also how all BT headphones should work.
I don't think most people stick with Apple because they are stuck, but most Apple users simply prefer Apple devices. I used Android for over a year back in the Nexus 5 days, but switched back to the iPhone because I preferred it. Other people prefer Android which is fine.
Yeap, for me its all the nice iphone & macbook integration. Seamless copy paste, phone call notification, text message showing up...
Of course you can do all of these on Android, but I tried using Android + Surface Pro last year and the amount of things you need to install & tweak are just silly.
I recommend iOS to friend and family, use LineageOS on an unlocked device personally for updates & features like Privacy Guard. Most people however just want a phone that works.
(a) iPhones are not that expensive if you consider they are lasting longer and being supported longer than their competitors.
(b) I don't think you understand fashion. It's not exclusive or interesting to have an iPhone when they make up half of all phones you see everyday in Western cities.
(c) Most phones these days are still being sold on contract plans and so even if phones were $10,000 many people could still easily afford it when it's broken down to a monthly payment.
For them, charging more money is the next step, like it or not.
The only way for them to compete, is to not. You buy Apple products for Fashion, to prove you can afford it.
Or at least, that's what has worked for a decade. Features is not what Apple brings, they bring Fashion.