What you seem to be missing is that Apple is one of the most profitable companies of all time. It’s not their strategy to serve the 80% of the market. The same way that BMW does not care about the Toyota market.
Features, memory sizes and processing speed of smartphones don’t really matter anymore. Even an iPhone 4 has been good-enough by most people’s standards. What they do care about is how the purchase makes them feel.
That’s why Apples brand is so powerful. And that’s why few people will consider Toyota superior to BMW. Even though they sell six times as many cars.