Yeah that's true, although they could also try stores like best buy and Walmart for example. Think about the potential marketing budget they could have by raising their prices. Heck Xiaomi could raise the price of the Mi Mix 2 from roughly $500 (3299 yuan) to $749 easily. That's an extra $249 per phone to pay for the increased shipping, logistics, licensing, customer support and marketing, and additional profit. At $749 the mi mix arguably blows away the iPhone X, or at the very least is in the same flagship category easily.
Anyhow just thoughts, someone is going to fit into that slot. Sure Apple and Samsung, and others have their own mid range flagships, but now you are downgrading significantly for the same price.