It’s also the same pricing strategy Apple did with the iPod, whereby they find a point of entry by price they’re comfortable offering, then they go up from there, presenting loads of increments. The latest iPhones—to say nothing of old models still available nor refurbs—present these prices:

iPhone SE: $399/$449/$549

iPhone 11: $699/$749/$849

iPhone 11 Pro: $999/$1149/$1349

iPhone 11 Pro Max: $1099/$1249/$1449

That’s four models from $399–$1449 with 8 price points within that $1050 range. If a customer is set on some feature that’s at an undesirable price with current models, prior generations of phones are there to offer alternative compromises.