How has NO ONE mentioned the original iPhone SE keynote yet? Apple explicitly said they were BLOWN AWAY at how many people demanded a small screen. The SE was first and foremost about smallness and appeasing the overwhelming / astonishing / surprising / researched-backed SMALL PHONE LOVER. NOT price.
The SE keynote did not say that.
In fact, referring to the 6s/6s plus, he said “...the VAST MAJORITY of our customers prefer these larger display iPhones..”.
He said, in 2015, they sold over 30M 4” screen iPhone. 30M is only 13% of iPhone sales that year.
In explaining these (modest) sales of 4” iPhones, he said “some people“ prefer smaller 4.0” phone.
But further said that many (majority in ”.some countries like China”..) of those 2015 4” iPhone customers were 1st time iPhone buyers. This was clearly budget price customers he was talking about.
Finally, he said they would “start the price” at “only $399”. Said that was the most affordable iPhone ever introduced.
Ie, low price and with a not so subtle hint that it could be further discounted later (which it was).
SE was all about low price. Introducing iPhone to 1st time customers. Those few that loved small regardless of price...with SE they got lucky and got it cheap too.