This is exactly correct.
To me it does matter that Android has more marketshare–it’s not insignificant. Props to them.
But when more people listen to music on iPhones, take pictures on iPhones, buy apps on iPhones, make major purchases on iPhones, browse the web on iPhones, etc.–that matters much more to me.
I see it as iPhones being the phone for people who are most engaged in the digital world, whether through creating things, purchasing things, photography, etc., and Android being the primary phone of the masses (since most people don’t do those things to a significant degree).
So it really is a matter of going after the most active and valuable customers and consciously avoiding the masses who want tons of features and tons of options at a cheap price (but who are highly unlikely to engage the way the top users do).