Benedict Evans:

When people talk about whether Apple should do a ‘cheap phone’, it’s important to be clear about which of these segments you’re really talking about. When people say ‘Apple is missing out on the next x billion people’ – that is, the portion of the market that’s still on feature phones – they’re actually talking about the first category. Even Samsung doesn’t really play here, nor Xiaomi. This is is the land of the $200 PC – very low margin commodities with a poor user experience.

Apple only competes where they can provide a good user experience.

I don’t know why anyone would have to repeat this like it’s news. But, well, here we are.