Let's look at it this way.
iPhones continue to be very popular despite the fact that they, on the surface, sport worse specs and appear to have fewer features than Android smartphones. At first glance, 20% market share for the iPhone seems to pale in comparison to Android's 80%, but let's not forget that 20% of the total smartphone user population is still a very large number nonetheless. Large enough that many developers choose to release apps for iOS first. Hundreds of millions of people around the world have voted with their wallets and decided that the iPhone is the phone for them.
Faced with such overwhelming evidence, any rational person should, at this juncture, stop to take a close second look at Apple and ask just what Apple is doing right. But no, it is evidently easier for you to continue to bury your head in the sand and lie to yourself that this is purely due to marketing and that hundreds of millions of people around the world are flat out wrong, rather than admit that maybe the real problem lies with you yourself and your inability to understand Apple?
The problem here is that you are focusing exclusively on specs. You assume that specs are the be-all and end-all of what makes a great user experience, and that consumers should buy a smartphone solely based on specs. You are wrong.
I said it once, and I will say it again - not everything which matters to a consumer can be documented and measured. For example, the iPhone has a very responsive touchscreen and the OS is optimised to give the impression of responsiveness. This can't be bullet-pointed, but the user can feel, and therefore appreciate, this benefit.
The iPhone has fewer, but larger pixels in its camera. Apple isn't perfect, but they are not run by idiots either. Given its resources, it would be so easy for Apple to run to Sony or Samsung, write them a blank check and go "I want the best camera modules you have. All of them." And then go on to boast about this during the next iPhone reveal. But they don't do this, and instead continue to use the same 8mp camera for the 4th year running and opt to focus all that time and resources on making the pixels larger instead. On paper, an 8mp camera should be no match for a 16mp camera, but in reality, you would be hard-pressed to find any difference between the two.
The A-series processor has fewer cores and lower clocked speed, but superior performance-per-watt.
The iPhone 5s and 6 have Touch-ID. On paper, any phone could theoretically sport a fingerprint-scanner but in actual usage, not all fingerprint scanners are created equal. Touch-ID continues to have a very real and meaningful impact to iPhone users every day, all the more that Apple has rolled out Apple Pay now.
Apple is competing. They are competing by focusing on the sort of differentiation that matters to consumers - differentiation by design. It can't be measured, but it can nevertheless by felt and appreciated by both buyers and users. And it appeals to enough of the right user base that Apple can garner over 90% of the smartphone industry's profits last quarter.
The idea that Apple is going to start losing customers just because Android suddenly becomes "good enough" or cheaper is just....I am laughing too hard to think of an appropriate adjective, but I think you get my drift.