One more example is the Oculus Quest 2 - it's $300 (64gb ssd) or $400 (256gb) for a truly outstanding headset, but it probably costs Facebook $400-$600 to make each unit of hardware. If you don't want to see ads[0] or log in with Facebook, that price becomes $800[1].
All i'm saying is that people will always pick the product that's cheaper but equivalent and are usually fine with post-purchase rent seeking via ads or a service fee that is (invisibly) tacked onto future purchases.
0: https://www.bbc.com/news/technology-57526135
1: https://i.judge.sh/lone/Derpy/HcfjI7YBPF.png ( https://business.oculus.com/products/ )
It’s additional revenue. The phone itself is already hugely profitable. In fact, the original business model didn’t include App Store revenue at all, and Apple were perfectly happy with that.