No, your understanding is correct. But that's because you probably aren't a crazed Apple fanboi. To them "premium" is a buzzword they throw around without even knowing WTF it means and they refuse to define it. In their minds it's a good substitute for an actual argument. My typical "discussion" with these people on a forum goes something like:
Why is this phone so expensive when it's a lot less powerful than the competition and runs a proprietary OS that you can't do much with?
Because it's just like so premium, OMG duh.
Um... Ok, so what does that mean exactly, does it mean it's better? What makes it better?
It's just premiumzer than the rest. Everyone knows you just can't beat Apple
Uh... right... So tell me, why would you buy it?
Because premium.
Dude, that makes no sense... You still haven't told me what's better about it. Sounds like you're just a fanboi for no reason.
PREMIUMZ!!!!

You're just being mean and a bigot and it's getting old!!!

