I think you are right. Apple charges premium prices for their phones. Yet give a smaller phone, less DRAM, less FLASH than other premium phones. This is important for the Chinese market. It is similar to the days when Cadillac people quoted that pound for pound they were cheaper than a VW bug.This did not make Cadillacs cheap, nor does it make a premium phone superior to another premium phone. But, this is how the market appears to be selling in China, the largest and fastest growing market in the world.
Don't know who I am quoting, but "the customer is always right, even when he's wrong". Apple needs to adapt. Supersize me Apple!
NOTE: Per apple technical posts, Apple justifies higher prices by buying premium FLASH memory which is faster than typical FLASH used, offsetting the costs with less DRAM which no becomes unnecessary. Don't know if technically this strategy is working, business-wise it is not anymore.