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But Apple has always made their image quality not cost effectiveness. Pivoting here too drastically could sacrifice their image and backfire

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Fair enough.

I had the same opinion when they released the neo. In 3-4 years time there are going to be absolutely loads of them looking shabby and tired and running very slowly. Apple has been so careful over the past 3 decades to avoid that image, I'm surprised they are happy to go down that road now.