But I would absolutely love a $400-500 iPhone and I'm fine if it's missing a lot of features. My phone just isn't my primary point of mobile computing anymore (if anything, Apple Watch fills that role for me now[0]), so I neither need nor want a $1000 phone (even though, being a fanboi, I have one). And the point of putting my CV in the first paragraph is to point out that, hey, even if you don't make money selling me a phone, Apple, you'll still make an arse-load of money off me. And maybe you'll get new customers/revenue to boot.
[0]Which, I'll point out, is also a ridiculously-priced device at $900 for the one I bought.