Apple is selling a smartphone with a tiny less-than-HD screen, a processor that toddles along at a whisker over 1 GHz and a tiny 1400 MaH battery, and they're doing quite nicely for themselves
Your statement just shows how behind the times Apple is. The power of it being perceived first has been worth Billions to them. Ironically what you are describing is other companies "entry" or "mid" level phones by Android. They often have "mini" in the name for obvious reasons. Apple make money through having an incredible ( and deserved) brand...but it peaked two years ago. That does not mean that its shrinking market share or growing mountains of cash with vanish any time soon. Those specifications are desirable large screens; waterproofing; IR everybody wants and desires these things not just geeks or hardcore gadget people, just people who swim and shower and watch tv and change channels etc etc.
The irony of your statement shows as once it would have been Steve Jobs strutting on stage taking about how "his" devices had "retina" displays, only to have you interpret this as "tiny less-than-HD screen"
No wonder Android has 1 Billion users