Of course they are. Market is strange, logic is not usually the main part of equation. Plus many of those who pay for an iPhone do it in a way ,subsidised ,that allows them to buy a product they never would if they had to pay at once. And carriers also favour high end devices adoption.iphones are overpriced and overrated? Apple only charges what the market will pay. Their product is one of the extremely few very premium-all-round smartphones out there.
As for beats, I personally don't care for them and someone already said it above but everyone knows you could get better sound quality for less if you really knew your audio shit but most people don't care. It sounds great to them and it's a great fashion accessory.
And i didn't say they aren't premium. I said they are overpriced and overrated. There are a number of phones out there cheaper that if had the apple logo would be way more popular and also deliver similar,if not better experiences. The power of the brand has power, as sony tvs had in the past vs other brands. But in a world where the smartphone is like having a Vuitton bag vs zara one as long as Apple has that brand appeal other contenders will have a tough time.
The beats thing is not that different from apple.
Plus let's be real, most people just use whatsapp and Facebook and candy crush and won't care about updates, os,and if battery lasts 1 day and a half or two as long as they reach the end of the day. And if on top of that you have an iPhone you are cool/fancy/whatever