I'm sure that people are well aware that Chinese knockoffs do exist and that they are stereotypically of lesser quality than it's authentic counterpart. I think the only thought process going on for most people thinking is overpriced is the fact that Apple is in the name. On computers they'd be wholly correct. On phones it's debatable. On watches they might be worth it depending on your usage. But that's the best case scenario for Apple, your usage might necessitate that quality. By and large people don't need that kind of quality because they'll never come close to that usage.

In that respect many apple products are very overpriced for many people.