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Given the sales numbers and profits, I'm not convinced that Apple isn't already producing the products people want at the price those people are willing to pay.

Race to the bottom affected the PC market. Look at how Dell, HP, and others are doing.

Yes, there is a large number of consumers that are very price sensitive. When they get subsidized devices (like the Kindle with ads), some portion of that group complains about the ads.

The best thing that could happen is for people to become more educated about the tradeoffs and make decisions accordingly.

All these devices are really cheap to produce, Apple and Samsung are selling them for US$ 500 to US$ 600 because of their high margins.

There's nothing wrong with this situation but as has happened with the PCs, consumers will probably see that there's no use sustaining prices that are high forever and when there's demand there will be supply. And boom, your will probably have a new race to the bottom.

I am pretty sure the thing you are missing is that there will be a segment of the market that will pay more -- as is happening with apple products. There is also a segment that is all about price and these are the people buying devices accordingly.

Unfortunately, there is a segment of the second group that buy cheap and then expect more. Eventually, devices will catch up to meet even the needs of those likely to complain at the lower price point.

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