Today 10 years ago I went to Poland to buy a Phone with pre installed #Firefox OS on. The Phone was a Alcatel One, so very shitty. Two years later I installed Firefox OS on my Nexus 5 instead.
It was a very good concept, but sadly rolled out on too shitty hardware so it never caught on.
You can probably have much larger profit margins on that $500+ phone, and if it breaks quickly (and if consumers are OK with that trend which they seem to be), then you get even more money.
That said, it hasn't been my personal experience that smart phones break easily. At least not the few I've had that have all lasted me 5+ years each. I've been using my Pixel 6 with no case, and I swear this thing tries to commit suicide constantly. If a surface isn't completely flat that thing will slowly slide until it falls and hits the floor. I've had it been literally 10 minutes after setting my phone down, the thing will seemingly fly off the desk out of nowhere.
Anywhere, this thing is built like a tank. Still works great.
Cool, then go ahead and sell the 500$ phone to a nigerian farmer.
Getting a foot into the high end market is almost impossible, the barrier to (successful) entry is gigantic. Tackling the underserved low-end market is a much more viable strategy. And now comes the kicker: Not being able to enter a market is (and this will shock you) even less profitable than entering a low-margin market.
I really don't intend that as an insult, but you're looking at this from a very western, rich, profit-oriented standpoint. Mozilla never was about profit and the world is larger than our western rich kid bubble. 500$ is enough to feed a person for an entire year (or more) in some countries.
You seem to be mistaking my description of reality for condoning it. I was just explaining why those companies focus on those markets, I wasn't saying anything about my personal opinion of that.