not surprised at all.
I watched mkbhd's review of the oppo x8 ultra yesterday; and in terms of hardware that thing is dialled to 11 on pretty much every spec and has about all the bells and whistles on it for a price slightly lower than an iphone pro.
The chinese landscape is incredibly competitive; and there's not much in the way of ecosystem lock in. Devices themselves actually need to be good to sell because consumers can just as easily switch to the newer best model.
Apple's strategy is purely ecosystem lock in; they don't seem to be interested in putting the best hardware or features onto their phones anymore; they just need the next pro model to be a little better than the prevous iphone pro model and bank on all their customers being already locked in by thier iwatches, app store purchases, icloud and messages.
They absolutely should release a top end - dialled to 11 phone that shuts up everyone with it's features and performance (and probably a price tag to boot), but instead we get the thinnest iphone ever?