I interpret the same facts differently: I see Apple realizing that the SE form factor doesn’t sell enough to be worth it, and trying something different with the Air. It sounds like the Air will likely go the way of the SE, with occasional updates but not every year.
Apple is very good at market research and understanding users… but not perfect. I think they genuinely believed the Air would sell a lot more than it did.
And “millions” is not necessarily a lot. Apple sells 250 million phones a year. A SKU that sells 3 million is a distraction with much lower ROI against R&D than a mainline phone. It takes just as much engineering to create and as much manufacturing to produce, so fixed costs are spread among many fewer units.
Apple is very good at market research and understanding users… but not perfect. I think they genuinely believed the Air would sell a lot more than it did.
And “millions” is not necessarily a lot. Apple sells 250 million phones a year. A SKU that sells 3 million is a distraction with much lower ROI against R&D than a mainline phone. It takes just as much engineering to create and as much manufacturing to produce, so fixed costs are spread among many fewer units.