[kipchak]

High income consumers are a steadily increasing percentage of consumer spending, and the bottom 60% of consumers are something like 20% of all spend. One outcome is just that the trend continues and high income consumers spend more which offsets decreases in low income consumers.

[solumunus]

That cohort can’t buy many iPhones. Does the price of an iPhone balloon to 5 figures to compensate?

[kipchak]

I think this is part of the reason why Apple has been promoting subscription services. iPhones have historically been apple's largest revenue source, but revenues have been increasing, from about 10% to 20% over the last 10 years.

Lets say the lower 50% of consumers buy something like a $1000 phone every 4 years currently, and they switch to buying a 16e for $600, or a decrease of $100 a year per customer. In revenue terms you could offset this by selling .5 customers a $240 a year Apple one subscription, up-selling a iPhone pro customer to 1TB storage, or convincing someone to buy a pair of Airpods Max over regular Airpods.