Apple has only one phone model, in essence the comparison is not fully relevant.
As I said, custom designed arm exists, and are used in android OS phones. They're not designed by the company who made the phone, they are designed by the chip designer (like qualcomm), for specific purposes (mobile usage, maximizing performance and battery life), but it's not much different from what apple does: the chip is not done by the people who design the phone, but by people assigned to that task, with input from people designing the phone. It's not much different from the other non-integrated way of doing things, where the chip is designed by people at qualcomm, with input from its customers as for what they want in terms of what the chip should be able to do.
In a way, apple is innovating in integrating everything in one company, it does not mean it is better in any way.