Apple is expert at pricing strategy. People will pay.
There is no current Android competition for the iPhone 12,─a nearly bezel-less screen phone in a compact size. The Samsung Galaxy S10E is last year's model and it's the only flagship small Android phone.
There is enormous pent-up demand for iPhones with the 2020 features: 1) Qualcomm modem, 2) 5G, 3) the first compact size, relatively large-screen iPhone. Many current iPhone users have been waiting several years to upgrade. iPhone unit sales fell in 2019-20 as users waited patiently for 5G. Unfortunately, the economic effects of Covid may but a damper on iPhone 12 sales.