Respectfully, that sounds like a way to rationalize not having looked at the market in depth. They’ve had competition in that space since the beginning – both other tech companies and actual fashion companies tried to make premium music players, phones, watches, etc. even before they entered those markets so at most you could say that they’ve out-competed them.

However, even that doesn’t fit what we see. Their pricing isn’t luxury - compare Google or Samsung’s flagship phones and it’s basically equal, nothing remotely like the significant cost differential we see between normal and luxury clothes or other personal goods, and that’s before you factor in the lead they have on features like performance or security. Buying a Mercedes costs multiple times more and won’t get you to work faster but buying an iPhone will load every web page faster than an Android phone at the same price point, for example.