You're missing the principle.
If I make lots of hats, and lots of people want hats, I might be able to charge $20 each. If I decide to make few hats, I might be able to charge $50 each. That is what Apple is doing, and it's a clear consequence of supply and demand.
Another clear consequence of supply and demand is the fact that other hat-makers will see the opportunity, make hats, increase the supply, and allow people to purchase cheap hats... except for the idiots that are demanding overpriced hats. That again is supply and demand, and that again is what is happening in the marketplace in which Apple resides.
Neither strategy is cheating, any more than choosing a different material to build a house is cheating.