There is no doubt when the original iPhone came out it was streets ahead of the competition, the likes of Nokia and Blackberry had become complacent, Apple turned the industry upside down.
The competition hasn't stood still since then though, the difference between a Lumia a Samsung and an iPhone much.
So why do people continue to pay a large premium for a small increase (if any) in functionality?
Anecdotally people seem to think differently about IPhones. They expect them to last a few years and retain value. People are more likely to protect them with cases and actually use the warrenty. A lot of other phones feel much more flimsy and you never seriously expect them to last more than a year or two. And because they are cheaper you can always just get another one.
A large premium? Outright, an iPhone is the same price as a Galaxy S5/Note. The Lumia on the other hand is much cheaper, which is one of the reasons my girlfriend wanted a 930 for Christmas (which I got her), the other being that she really likes Windows Phone. I personally prefer the iPhone, but I use Apple everything.
The competition hasn't stood still since then though, the difference between a Lumia a Samsung and an iPhone much.
So why do people continue to pay a large premium for a small increase (if any) in functionality?