It does however mean Apple has significant market power. Almost by definition: in a very counterfactual perfectly competitive smartphone market, everyone sells at cost and there aren't any profits. Reducing it to monopoly vs. not-a-monopoly is drawing too bright a line.
And I don't really think iPhones are a Veblen good exactly. Targeted at higher-income buyers? Yes. Valued as much for design as aesthetics? Absolutely. But pretty sure a $500 iPhone would outsell an otherwise-identical $800 iPhone, nevertheless.
