Agreed. Similar reason why Starbucks has a Venti size and no longer lists their Short size on the menu – so that it makes it more reasonable (from a consumer standpoint) to purchase the medium-range option (Grande), thus pushing up the average price point.
Not saying that iPhones are priced the same way as lattes, but that's a known pricing consideration.
Not saying that iPhones are priced the same way as lattes, but that's a known pricing consideration.