It isn't crossing a threshold. The old iphones and their "affordable" price tags was crossing a threshhold. Apple was dipping their toes in the middle-america Market in order to grab market share. And now they're returning to what they've always sold, overpriced gadgets aimed at a specific niche demo.
Can't it be both? Apple sells upmarket but also mid-market phones, like the iPhone SE. Features are introduced on the high-end models and then migrate down. Of course Apple will continue to compete in the mid-market range.
Which is the best phone I've ever owned -- Nokia N9 aside, anyway. Excellent size, great performance, latest updates and I got it second hand (but BNIB, was her insurance replacement for a lost phone) for $350AUD. I get to use iOS with a reasonably modern day chipset, an excellent camera, but for the cost of a midrange android phone. Excellent, really.