Bottom of the line laptop cheaper than top of the line phone isn’t too hard to believe... it’s still more than double the price of their cheapest phone

That is due to how 4G/5G tech structure their patents cost which is cheaper for non-smartphone devices. You will be adding at least $200+ to Apple's MSRP for Modem and Patents on Smartphone alone.

The 256GB iPad Air is $649, the High Memory Model are the high margin products. And that is already cheaper iPhone. As a matter of fact I am surprised how everyone think $799 is a bargain or great pricing. Swapping the cost of camera, gyroscope, Touch Screen, to Track Pad and A14X.

I am expecting it more to be $699. With an 16GB RAM, 512GB version for $899. With a future 14" Model being $100 more.

Edit: Actually thinking about it may be that is why the 12" starts at $799, it will lower the price to $699 a year later to make way for $14".

The cheapest air is already cheaper than some higher-spec iPhones. But it will be interesting, whether they bring cellular connectivity to their laptops with Apple Silicon or whether that stays exclusive to iPhone and iPad.