Maybe "premium" would be a better word than "luxury"? Apple are trying to be the premium option and people like showing off the premium items they own (which is referred to in scientific circles as 'costly signalling').
Again have you ever thought that something is “premium” based on its feature set and how well it works - not just to impress people?
The difference is that you can buy an iPhone for $17-$25/month compared to $4-$12/month for an Android phone. It’s like going to McDonalds and choosing not to eat off the value menu.
Over 50% of the market including my 80 year old mom are not buying iPhones to impress people.
What does that advert say? We have the best sound quality? We have the most storage? We have the best value for money? None of those things - it says you should buy this because it will make you look cool.
I didn't say every single person who buys an iPhone is just trying to look cool. But that is first and foremost how they sell their products.
Does that make it clearer?