Apple's true advantage lies around the fact they build both there hardware and software, enabling them to leverage the design aspects of both the worlds in a manner none of the others can really do.
Think about it, the iPhone 5 packing in the horse power it has, while becoming light, and compact (height , width , thickness) and at the same time building an Eco System that's integrated so well with Apple Tv, Air Drop (Coming in iOS 7 to iOS).
I love Air Drop as its a way to transfer files via both wifi and bluetooth, it just detects the best way to discover others automatically.
You don't have to go around the room actually bumping your phone with each person you wanna transfer files too :P
Top that off with iTunes Radio (in iOS 7) you have great music discoverability, and then being able to buy music with a single tap.
We now know they are bringing Bio metrics in.
iOS in the Car is another area of expansion the others haven't even started think off yet.
The competition is bewildered at all the directions Apple's expanding.
What do we make of all this ?
User Experience, Customer Satisfaction is taken up way off the charts. Those elements built what's called Brand Loyalty among its users, something that NO platform has managed to build today the way Apple has.
So with a mid level iPhone rumored, what do you get ? You get more to experience Apple's flavor and most of them are going to be tempted to move to its premium offering or buy into there Eco System since they understand the value then first hand.
Edited by nikilok - 8/8/13 at 1:15am