Hi Abhinav and thanks for reading and responding!
You add an important point. Apple’s upsell strategy builds some degree of dissatisfaction into the purchasing process. This works on many people — encouraging them to buy a more expensive model. But it probably also puts millions of people off entirely. The existence of the more expensive models makes them reluctant to buy a cheaper model. But if they bought a more expensive model, they’d have lingering dissatisfaction over the price. So they simply don’t buy an iPhone at all.