These types of "budget" phones that Apple does are for people who can't/won't buy the flagship (because too expensive) but wouldn't buy something second-hand either.
There are a LOT of people like that. It is not rational at all; they would rather buy something shittier for their money than get more value. My grandparents are like that.
To buy in the second-hand market you need to have some knowledge about how phones compare in the first place, even if you use a platform that minimizes the risks.
So, it's not the same market at all, and Apple is pushing their luck even more with a pricing way too high for what is essentially a 3 years old phones at best (the chip makes little difference to the typical user of these phones).