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Most people use pre-paid phones until they either break down or get stolen."
Reference please. My personal impression is that most people buy subsidized phones, as part of the contract, every 2 years when the renewal is up.
If you have better data than my anecdote, I'm all ears.
The Android devices that I've had, and that my family has had, stopped receiving major updates, and even security patches, after only 1 year.
So first of all, I don't care what other people do, I can't use devices that are no longer upgraded with security patches. Meanwhile iPhone 6s is getting upgraded to iOS 14.
Also, low end Androids stop being usable after about 2 years, either because apps become too slow, or because the battery is affected. And even the high end phones have hardware issues much faster than my iPhones. I've had two Galaxy S phones in my household, after 2 years one had a damaged motherboard and the other had a battery dying on us.
These devices are designed for obsolescence. And many people are actually spending more money on those lower end Androids than if they got a higher end iPhone and keep it for 6 years.
My 3 year old iPhone 8 still has a battery that's in top shape BTW, with no performance issues.