Believe me, I know Apple are far smarter than I am, but it is inevitable if they made a $499 phone, they would gain new users by the boatload. I’m sure if Ferrari made a $35k car, it would also be a massive hit with people who have always wanted one but couldn’t afford it.
The SE was proof that people love cheap iPhones. Most people who owned it picked it up because it was cost effective. My buddy works at a phone store, and people come in all the time asking for the cheapest iPhone. They don’t know the difference between a Max, a pixel or a galaxy. All they know is they want an iPhone that is the lowest price. A $499 iPhone would be the best selling phone year in and year out.