In other words, iPhone users care about the experience of using a phone while Android users care about openness, specs and other things.
That's really what it boils down to - and Apple is going after people who just want a phone. It doesn't matter how many gigglehurtz it has, or superbytes, or wigglypixels. They want a phone. Sure it does things better than their old one, but in the end, teraquads and such don't matter.
Android though is all about the quad/octo/hexa/million cores and terabytes and all that. A bunch of gobbledegook people some people care about (we usually call them "measurebaters" because my device (and likewise ego in some instances) is depending on the numbers being bigger or better than yours. (And you've never see it until you see these tiny Asian women carrying huge phones they can barely grasp with two hands - it's that big).
Don't get me wrong, both are valid ways of selling a product - Apple concentrates on user experience, Android concentrates on openness, freedom, or more typically, specs. Though in Asia you generally have an advantage on Android since running pirated apps is the rule of thumb.
Apple isn't going after "people who want a phone", they're cultivating a crop of people who are willing to hand over large sums of money for something they believe is superior regardless of it being superior or not. It's been the same for their desktop hardware for ages. Yes the stability is there, but the ability and capability of the computer compared to the competition is lacking.
Years ago, during the early PowerPC era, 2 things happened that I would have sworn to be impossible. (1) Apple allowed for hardware clones, (2) Microsoft had an OS to run on the platform. Apple opened their design and allowed 3rd party manufacturers to produce hardware and Microsoft built a version of WinNT to run on the PPC hardware. Apple then started losing sales to these "white box" vendors who were putting out good hardware (because they had to meet Apple's specs) notably cheaper than the real Apple boxes. On top of that, you also have the big competitor's OS running on comparable hardware and running very nice, very stable. Suddenly all the licensing to produce the clone hardware goes away.
Apple, for quite a while, has only cared about the money. The reason you saw ][e systems in so many schools and earlier generation Macs was that Apple gave a deep discount to Educational Entities. Certain events happened, certain people departed as certain people rose to power and suddenly that all went away. If you can keep people distracted enough and disconnected then you can push anything and it's like magic.