I use to agree with you but that metric sailed a long to me ago. All pricing, everywhere now, is based on how much they think people will pay, not cost plus a reasonable profit.

A $1300 iPhone probably cost around $200 to actually produce, and that covers development.

Any cost savings on production, or cheaper materials, is profit passed on to the stockholder. It does not go to workers and certainly does not go to a cheaper sales price.