Race to the bottom is not the answer. If all you are worried about is marketshare then Apple is not for you. Apple could control nearly the entire market if they sold $300 phones or as the other vendors do (give their phones away). Doing so would not help the bottom line and would impact R&D.
Market share is vital to developers and the applications they create are the cornerstone of any platform. If iOS market share keeps falling then soon more and more developers will start to prioritise Android. Apple needs products on every mobile segment, from low end to high end if they want stay relevant.
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