I don't think that the iPhone is a premium or 'luxury' product, but I'm not surprised that Apple didn't make the iPhone 5C a cheap phone. It was meant as a replacement for the 5 and nothing else.
Apple already commands a huge share in the American market. They don't need to sell a low cost iPhone to maintain a leg-up on the competition, as the iPhone is doing pretty good as a phone. It's still one of the topmost selling smartphones on the planet, after all. iPhones aren't luxury smartphones but Apple has an image to maintain, which is one of high quality products. They won't make a low quality product for market share and ruin the brand. I don't care what people say, the 5C is mostly stainless steel. The plastic back is mostly for visual effect. You won't suddenly see Apple drop the phone's price by $200 for that.
As for emerging markets, Apple is a premium brand in some of those markets. It would damage the 'luxury' brand that Apple holds in those markets if they release a cheap phone.
Just my 2 cents.
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