Offering cheap products does not mean a company has to compete with the entry-level Dell boxes. It means they offer a good product at a reasonably cheap price, which an updated Mini would be.
And this is exactly the point I was making.
The CURRENT iPhone is a good product at a reasonably cheap price.
A cheaper iPone Nano would be competing with dirt-cheap, entry level cell phones.
So as you point out with computers, Apple does offer inexpensive, good-value items. (Current iPhone) They do not offer dirt-cheap, entry-level items. (iPhone Nano)
That's exactly what I was trying to say before.