And I think I can understand why. The Nokia 520 is a great device for under € 170. And the HTC has a great screen, stereo sound and a very smooth designed Android version.
Apple generally just does it's thing where it doesn't go for the largest market share, but because they were unusually innovative/lucky with the iPhone, they had a period of popularity. The fact that the iPhone 5C isn't the cheap phone we expected seems to confirm this.
It seems quite possible that things are 'normalizing' again, and Apple will end up comfortably occupying a big chunk of the high-end space. Maybe they're trying to come up with another killer product category to dominate in, but I wouldn't be surprised if internally this isn't and hasn't ever been their goal.
Now, investors might feel different, of course, and I find that interesting to observe.
It might be that microsoft's success with windows was the aberration. After all DOS and then windows were inferior products that achieved critical mass and widespread success because IBM got them into the enterprise and apple was asleep at the wheel.
I remember growing up a really shoddy looking computer in the house, but nobody cared or wanted better because it was in my dad's office and mostly used for work (and only occasionally for a game or two).