No they don't. Brands are represented on how they are perceived and there might be nothing that Apple can do for a phone that costs sub 300 usd.
Apple already has marketshare and creating a phone that is so compromised is only going to damage their brand becuase of the perception of the brand does not sync with the experience of that device.
the iPhone e is there not to be the cheaper phone. IT's there for the non tech savvy person that does not care about wireless chargin, the top tier camera system or th super thin and lightness of certain high end phones. IT's for a person that just wants and iphone for the experience and a good to great battery life for their light to medium use.
I think what apple needs to do is to adjust the iPhone XXe price back to 499 and not 599.
The e model phone is primarily for corporations, and less-so the prepaid market. My company is buying a ton of them (it's the only employer-provided phone they offer), my brothers employeer only offers the 16e.
As for individuals in the US, almost no one pays the full price, and if you do, you're an idiot. They can routinely be found on sale from prepaid carriers for >$200, out the door and no contract.