Stratechery:

Conspicuous consumption and status-seeking are major drivers of the Asian market in particular, and are why Asians make up over 50% of the luxury market by nationality. In the case of handbags, you absolutely are saying something with your selection: a Louis Vuitton bag is many people’s first luxury purchase, and shows you have some means; a Chanel bag, on the other hand, signifies you are at least upper middle class, maybe even rich.

At the top of the heap, though, is Hermès: sport a Birkin bag and there is no question as to your status.

While I don’t agree with all of his points, it’s a very instructive way to look at Apple and perhaps how and where they see their place in the market.