False. Except if somebody wants a lower price iPhone, they can still have the iPhone 7 or iPhone 8. Let’s not be dismissive of the fact that the XR still includes quite a bit of technology and a new form factor for $750. So it’s not like Apple is only leaving one option for the consumer, when you have multiple options in their lineup that still include touch ID for those who are interested or they see face ID in the new form factor for $750.
Suggesting that people buy an obsolete iPhone is really a false choice, since they have old LTE banding and technology. Apple's model of selling old iPhones for years afterwards makes no sense. They should have a budget model that removes some features and uses lower prices components, but stays up to date with LTE banding.
I think Apple is doing the same thing that they did with laptops. For a while, an equivalent Windows laptop was about the same price as a Mac. However, after a while, the Windows laptops got better and commoditized, and the price of a Mac went up relative to the price of a Windows machine. We started to see that last year when Apple started raising the price of the iPhone at the same time that the cost of Android phones has gone down.
The value proposition has gotten a lot weaker on the iPhone. Some features have been removed, the price has gone up, and meanwhile the competition has gotten better and cheaper. I have no doubt that they will still sell a ton of them, but I think they are also going to miss a lot of potential sales that they could have made if they had stuck to the $650 price point, or better yet, dropped the price a bit.
I don't think your average user particularly needs or wants FaceID or the display on the Xr. I think they would have been perfectly fine with a minor incremental upgrade to the iPhone 7/8 design with a headphone jack and a pricetag of $650 or less. Meanwhile, come Black Friday, Samsung will be selling Galaxy S9s that have their notch-free design, fingerprint and face recognition, a headphone jack, an SD card slot, and more for around $500 on sale.
Again, you’re off point. iOS users are likely tied one more way or the other with the iPhone having the Apple Watch, AirPods, iPad, HomePod, which all is part of the iOS ecosystem. So let’s consider those options as well that uniformly tie all those products together, because when you have one iPhone, they likely have more than one Apple product in their household.
iOS and android is what the user is choosing, they’re _not_ choosing the hardware, they’re choosing the ecosystem and platform to find the experience through security, stability and fluidity, and iOS trumps android in all those facets.
I have seen a lot of people switch back and forth, including myself. Most people don't have Apple Watches, and they certainly don't have HomePods, AirPods, or anything else Pods. The Apple TV is great, but you don't need an iPhone to use it. Yes, there is a core group of Apple loyalists who will stay no matter what, but for every one of them, there are 10 or 20 average users who have 10-20 apps on their phone, and could be swayed to switch one way or another. There are also a lot of iPhone users who aren't terribly technically inclined, and their attitude is that their iPhone 6 or 6s or whatever works fine, so they'll just get the battery replaced and keep using it.
I have a Macbook Pro and an iPad, which is more Apple hardware than the average iPhone user has, and I don't find the ecosystem to be compelling at all. Beyond their OS, both run almost entirely non-Apple software. My iPad has the App Store and Settings on the home screen, everything else is Google or other third-party apps. I have 4 Google Apps on the home screen. My MBP has a ton of stuff on it, and just looking at it reminded me I should remove Reminders and Safari from the dock, since I can't remember when I last opened them, leaving TextEdit, Preview, App Store, Screen Sharing, Activity Monitor, System Information, Disk Utility, Terminal, System Preferences, and the Trash Can as the only Apple applications that I use on it, and none of those have any sort of compelling ecosystem play. I could use iMessage and FaceTime with my email address if someone else was too technologically inept to configure Skype or Google Hangouts, but that doesn't require an iPhone, and would be better on an iPad anyway.