Chinese companies have been doing that for years and they actually pass the savings to the consumer.
I wouldn't be surprised if the addition of 5G alone ate into those savings, and they kept the prices largely the same in spite of it. At least it seems that way to me, given the fact that many Android phone manufacturers have a considerably more expensive 5G version of their phones.
Apart from the Camera ( Arguably the two sense are even better ) Your $799 iPhone 12 is better than last years's iPhone 11 Pro costing $999.
To be clear I'm not saying you're wrong, I just don't share your certainty here.