It is unlikely that Apple would make a worse product in this category to enter a price war that they cannot win. Part of the Apple strategy is to be seen as the

It is unlikely that Apple would make a worse product in this category to enter a price war that they cannot win. Part of the Apple strategy is to be seen as the best option, and pricing is a part of that. You’re paying to have an experience that is about serving you rather than advertisers. If that’s worth money to you, buy it. Otherwise, you get what you pay for: as crappy a device they can get away with, subsidized by ads.