It’s simple to explain in the same way that Apple even in the 90s made the most profit of any personal computer manufacturer even though PCs clearly had superior hardware and much more software.

The answer is monopoly pricing vs competition. Apple is the only iOS manufacturer, just like they were the only MacOS Manufacturer (excepting the brief period of Mac clones)

That means all Android manufacturers compete and split their market driving down prices and margins and divvying up market share.

You saw the same thing in PCs when they were almost sold at cost or razor thin margins because they were commodified: a pc from dell vs hp vs compaq vs gazillion other vendors was basically the same experience.