The problem is one of trust. Apple chucks out a £1000 phone it's going to be good, albeit overpriced. MS -whether actually good or bad - people associate it with (a) Work and (b) Crap.
Premium price tag and dreadful rep is just going to crash and burn.
And the Polar opposite. The rather excellent MS-owned Nokia that this post was scribbled on; less than £100. Does all I want a phone to do reasonably well. Genuinely the only reason for an upgrade would be the camera. And I bet doesn't have a very good margin for MS on it.