A big part of the markup is simply the proprietary systems that run the phone. Apple’s restrictive OS, combined with the planned obsolescence strategy for older units, corral their customer base into buying newer models every 3-5 years.

Android’s open system allows for competitor brands to compete alongside the bigger publishers - Samsung and Sony and Lenova and Motorola. But even then, we’ve lost the more modular phone design to a hobbyist-hostile manufacturing strategy that precludes people from swapping out old batteries or doing basic repairs.

This, combined with data providers that try to bake the price of new phones into the subscription service (AT&T, Verizon, and Tmobile all offering “free” phone upgrades on painfully expensive plans) make the industry this extractive rent-seeking mess.