It sounds like the coming 8GB iPhone 6 will be the one to go head to head with the Moto G.
Losing 8GB likely saves Apple a dollar or two in production costs, enough to produce a more competitive screen.
On that note it is worth noting that Samsung is suing Dyson for tarnishing their image.Seems they may be trying to stem the tide that came from those more clever court cases.In fact its so copycat Apple might have a claim against Dyson for prior art.Outside of the US the iPhone has often died a death so marketing is certainly all a perception thing.
Outside of the US, in the auto-mobile market MirrorLink is likely to be adopted as standard.
I'm not sure about 'fooling the markets', most competition revolves around hiding existence of the best new technologies.
Reality is like the tide, ever changing.
It sounds slightly clueless by the IDC.
If Apple competed at the low end then competition authorities would show far more interest.
Pricing it high scoops up the cash while staying low on radar. A profit win win to me.