Partially yes, Android vs iPhone is largely vibes. The point is it’s a product that works for years without the user having to fuck with it too much for most use cases. If the hardware fits your needs, it’s the best in the world. If you like a 3.5mm jack, there are other options—hence why it’s tough to argue they have a smartphone monopoly.
If you’re asking why it’s luxury, it’s a combination of the materials, machining and service experience. Luxury products aren’t necessarily better, certainly not for someone who can’t afford them. They’re simply more luxurious. Easier, more comfortable, et cetera.
This is the thing though. Non-Apple phones are made of equally nice materials, have equally nice design and equal or more utility. Several Samsung phones and the folding Pixel are more money than the top end iPhone. Hell, because of carrier subsidies the top end iPhone can be had for $0 up front.
So what makes an iPhone more luxurious than say, a Galaxy S24 Ultra, Z Fold 6, Pixel 9 Pro XL or 9 Pro Fold?