I suppose the 5C and 5S was a weak first step; the 5C really needed to be another $100 cheaper. It will be interesting if the rumors of a 4.7" and 5.5" iphone are true. Apple may get to the point, to compete better globally, that they do offer a mid to low range priced phone (that isn't an old model).

Of course, if they do this, it will be harder for them to keep the honor of having the top selling phone, but it likely would help them win back some of the market share they have lost.