Well that's not exactly what I wrote. My statement was all the remaining android users who were willing to jump ship. People who are willing to use a $100-200 phone are never going to jump to Apple and I doubt Apple would ever even try to market to them. Assuming $400 is Apple's absolute threshold. But right now, Apple is $350-450 away from a $200 droid. Next year they'll only be $250-350. For someone counting Benjamin's, that's a major reduction. Regardless, Apple can sell that phone for free on some plans, making it just as competitive as the $99 wholesale Android for the customer who really wants to jump ship. Right now the most affordable 4.7" screen Apple sells is still $100 on a 2-year contract.
If the 6 is indeed selling better than the 6S, and I don't know that's the case, it's because there's not enough to set the 6S apart. That won't happen with the 7, otherwise they wouldn't even be able to leave the 6S at $550 without a repeat of this year.
But I also don't think a $450 iPhone is going to cannibalize a $550 one, given that it'll be 3 year old technology. Right now it's just last year's tech. And people will think twice about spending even $450 for it. The people who will buy it are the ones already paying for a crap Android product, for which 3 year old Apple tech is a step up.
And here's food for thought. The iPod Touch got a major update and Apple still sold it for $50-100 less than the previous model. The iPhone may well be positioned for a whole new pricing structure starting at $350 or $400, now that Apple is getting their money upfront, bundling Apple Care+, and earning interest on installment plans.
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