Those that could afford a $700-800 6/6s/7/8 can just as easily afford the XR, even if they don’t want to spend another $10/month (or $250 outright) on an XS.This whole business model of offering minor incremental features each year is what made Apple rich. But it may be the same reason why sales are slumping. People are simply catching on and tired of being milked every year.
But I think most people simply aren’t upgrading as often because older iPhones are still performing well enough that they don’t need replacing. I bought the 4s, 5s and then the 6s. But I’ve still got that 6s. It’s still a decent iPhone, even here in year four.
When it dies, or if I break/lose it, I’ll replace it. If that’s this year, maybe I’d buy an XR, or if that’s too big an XS. If they’re both too big I’d probably just buy a 7 for $449.
Apple says they’re ok with people keeping their iPhones longer, since they see those users as satisfied and very likely to (eventually) buy another iPhone.
Would Apple prefer everyone upgrade every two years, or even yearly? Sure! But most people aren’t going to do that; you can’t “make” someone replace a phone they’re already really happy with. And certainly Apple doesn’t expect someone with an XR to buy an 11R just because it’s got 4x4 MIMO.