iPhones are catch-up devices
Apple has relied on its mystique to keep its prices high. This applies to its other products as well. Jobs' design philosopphy was simple: make the product easy to use, and make it appeal to the users' desire for elegance. He understood the cool factor. In the early days of personal devices, those two principles made Apple superior to its competitors. Eg, I bought a Powerbook G4 because it had plug'n'play internet capability, which mattered in the days of internet cafes. The Windows-based machines caught up within a year or so, which is why I didn't stay with Apple. The cool factor doesn't work with me.
Ditto for Android vs iPhone. iPhone cameras began to lag behind Samsung etc. My daughter bought a new iPhone this year _only_ because her old iPhone had a poorer camera than my Samsung G5. Both phones were of the same vintage. The latest Samsung phones are being sold as "cameras with other stuff", which is IMO an indicator of where personal devices are going.
Apple could leapfrog, but I doubt that it will. In any case, the Apple mystique is fading. As consumers become more comfortable with the technology, they rely less on style and more on substance. Apple can longer claim that its elegance is an index of technical superiority.