From what I have seen, I think that is just fine with Apple. Selling another phone isn’t all Apple is after. Apple desires a customer that will buy the store and all the products inside. A customer that isn’t willing to spend a premium on the phone is less likely to pay for the apps and services that support it. And that’s really what’s important to Apple. They want customers with deep pockets that don’t give a second thought to the cost. Apple plones are not Gillette razors. It’s not a razor, razor blade situation. It’s more like purchasing a luxury eropean car. They serve the same purpose but he cost and experience both premium. That lifestyle just isn’t for everyone.