Smaller form factors don’t equal lower pricing. Most phone manufacturers had bigger and better screens before Apple came out with the 6. But Apple maneged to be more expensive. Most likely because iOS was ahead of android back then. Fast forward today: Android is on par and in many ways even better so is the hardware of competitors.
I disagree. Relatively speaking within Apple’s own eco system: smaller form factors usually mean lower pricing, i.e: plus vs non plus models, iPad Pro 11” vs 12.9”, MBP 13” vs 15”, iMac 21.5” vs 17”, etc etc etc....the list goes on.
Given all the examples listed above, the XR can indeed be sold at a cheaper price in a smaller form factor.