"The iPhone is price comparable with equivalent smartphones."
I bought an HTC Desire at about the same time the Iphone 4 came out. The Desire is about the same spec as an Iphone 4, slightly lower res screen, slightly faster processor, generally pretty similar.
The Desire was being advertised at £30/mo, I managed to get mine at £22/mo by wrangling with the network.
The Iphone 4 was available for £65/mo.
So, yeah. More than twice as much (almost three times as much if you take the price I actually got) for a similar phone. The Desire is made of plastic, yes, but it doesn't feel cheap and tacky. And it's comparable to the Iphone 4 for processor and screen.
As another data point, the 3GS was also available at that time. For £35/mo. So, for an extra £5 over the Desire, you could get a much slower phone with less than half the screen resolution. I would also say that the 3GS looks much tackier and less nicely made than the Desire.
I accept this was a significant time ago - now the Iphone 4 is dated and there are much more powerful Android devices available - so I've checked for updated prices. The Iphone 4 is now £35/mo, the Desire S is £25/mo and the HTC Sensation (a much higher specced phone than the Iphone4) is £30.
(all prices are for 24 month contracts, with "free" phones)