Part of me thinks this is a bad sign for Apple. They have always been a premium brand. I'm not a business major, but it just feels like a bad thing when premium enters low-end markets.

But on the other hand, this is kind of the culmination of them owning their hardware stack. They can avoid the commoditization race to the bottom since they are the exclusive owners of a significant amount of their hardware vertical, From chips to enclosure. Perhaps that will let them retain the margins that were previously driven by a consumer base that prized prestige over price.

While my intuition is that this may be the last big cash grab that Apple squeezes out of their premium image, they did have a massive hit back in the day with the original iMac (the CRT based one). They've defined "cheap and premium" categories before.