They are the regular consumers, the one's who don't hang out on tech forums, and they don't even know what storage or ram or any of that stuff is, and they don't care. I work in wireless and when I ask someone what storage size they want on their new iPhone, the most common response is "I didn't know that there were different options."
People don't give a damn that the newest 9.7 inch iPad will start at 100 dollars more. Once you tell them that they get twice the internal storage, better speakers, a faster processor, and support for an Apple Pencil and Smart Keyboard, they will feel that they are actually getting a lot more for that extra 100 bucks. Personally, I don't really get the outrage regarding the 599 entry price.