I wouldn’t get too hung up on the term flagship though. The iPhone 11 is a similar price than previous flagship devices in all countries but that was before the introduction of the Pro edition iPhones. There’s two tiers now and the mid tier iPhones are nearly as capable as the Pro versions anyway, albeit a slightly less vibrant screen, one less camera and an aluminium chassis. To most that isn’t the appeal when it’s costs more and is largely insignificant.That $1200 price was also what the iPhone 6S cost, with the 6S Plus another couple of hundred more, so the flagship iPhones have gone from $1200-$1500 back then to $1750-$2500 now...Which means today’s low tier iPhone costs the same as the 6S generation flagships...
The vast majority of iPhone users are not comfortable paying £1k+ for an iPhone, so the 11 satisfies the core market. $1200 AUD is roughly £587, which is cheap though. Is there a sales tax added to that?