Android phones are a lower-priced commodity. Apple products are luxury goods, like designer shoes or prestige cars. Apple will sell you last year's iPhone at a discount, but only on the clear understanding that it is visibly a cheap, old iPhone. If the basic form factor doesn't change between generations, you can guarantee that the color will.

Apple's profits clearly vindicate this as a business strategy.

It would only be priced as a commodity if it can be easily replicated as a commodity by 3rd parties.

Even without fresh innovations if the competition can't produce a product of equal quality it will still hold its value in the market place.

Says you, not Apple. The market seems to agree with Apple.