Earlier quoted context omitted.
Like every other software market, outsourcing firms are eating up the bottom end of the iOS development market at rates far below that. But I imagine if you can cultivate the right kind of local clients you can do well. Since you mention it, if anybody needs some freelance help with an app I'm available. As a self-outsourced American currently living in Vietnam I can significantly undercut $150/hr. ;)
Can you explain exactly what about the service delivered is different with you living in Vietnam versus you living in, I don't know, Central Japan? Or, for that matter, living in whatever "One town too far to come into the office in San Francisco" is? I mean, sure, you have a cost of living which will let you attempt to compete on price for the worst projects from the worst customers, but why not just deliver desirab…
Are you just upset that he is competing on price? Given his cost structure it makes perfect sense for him to want to deliver desirable projects for great customers at a great price.
Clearly you know that there is no fixed price that the market has decided professional iOS development is worth. And now that there is one additional professional iOS developer working from Vietnam the price turns out to be lower than what you think it should be.