But it’s better to sell phones with better margin. More people need to take Econ 101. Opportunity cost is an actual thing. You can be sure they did the math. Selling ever so slightly fewer larger phones at higher margin is better than selling slightly more phones at a lower margin.
Apple knows its sales and profits much better than anyone else.
And yet, here I sit with my iPhone 12 mini and will absolutely not upgrade until it explodes or there's a new mini. THAT is also an opportunity cost.