Why are hardware makers who use Android not making profits?

There are several reasons, in my opinion. I'll put Androids vs. Apple in each.

1. Design: Let's face it. Most android phones are ugly. The iPhone has always sported an amazing design... Samsung phones used to be terribly unappealing (they did make some improvements). Good looking androids are hard to find. In my opinion, the only acceptable androids regarding design are HTCs (especially the Desire series) & some LGs.
2. Innovation: Now I know innovation isn't much of an Apple thing... but as for Androids, most makers tend to do the same thing for their flagship smartphones: High-end specs. And that's it. So basically they have 3GB RAM, 21MP front camera, etc. with nothing interesting about them. Apple however, doesn't put the best hardware. It does it on an incremental level. Furthermore, Apple kind of knows that an interesting phone isn't one with the best hardware. Do kids & teenagers even understand most of the specifications? Probably not. They only want something that looks nice, does something nice, and is popular among other teenagers. That's why Apple does things like fingerprint scanners (implemented first by Motorola, but Apple promotes them better and kept them in every new flagship) & "3D touch" etc.
3. Popularity: Continuing on what I said last point... some people get iPhones simply because: they know cool people with iPhones. Celebrities tend to have iPhones. The Kardashians, the Jenners, Selena Gomez, etc etc. Why bother with an ugly looking android (with high specs) when you can get a good looking iPhone that most of the people have?
4. Security: Now security isn't really important to teenagers. I keep saying teenagers because I'm pretty sure that age group is the one that provides most of the profits to the smartphone makers. I have digressed; anyway... Many people prefer Apple over Androids because they're hypothetically more secure. This security is due to 2 things: a) iOS (the system on the iPhone) is closed-sourceunlike Android which is open-source. This basically means that the code used to make iOS is secret and not shared to the public, while Android is open for everyone. Now open-source code is great for developers [which is why Android stock software can be replaced with customized software], but it also gives room for hackers to find back-doors in the code. Example: "Stagefright" hack found in Android. b) iOS system is only for iPhones/iPads. While Android is for Samsung, HTC, LG, Sony, Huwaei, and so on. So a problem in iOS is easier to solve. While Android updates have to be tailored for each and every different kind of Android phone.  ****EDIT****: As  pointed out, saying open/closed source is a very vague description. A more accurate description would be that the Android ecosystem is open unlike Apple's... meaning Android apps can be downloaded from anywhere.

I've been an Android user for the past 4 years, and I'm considering trying an iPhone to see what it's like. It's that attractive.