Why a cheaper version of the next iPhone is a bad idea

This idea I have may seem ludicrous because I haven't ever owned a smartphone but I think many other people are wondering:

Why did Apple decide to make a low-cost iPhone 5C?

I don't mean that it's not a completely bad idea.  The iPhone unlocked is definitely one of Apple's most overpriced technology product.  Making a cheaper one seems like a great idea to people who desperately covet one yet cannot afford to spurge on one immediately.

However, I think it may actually damage Apple's legendary status as a technology company.

You see, the iPhone has always been a high-end smartphone.  However with the option of a low-cost iPhone, the smartphone will cease to have any product image of a luxury.  Sure, the "regular" metal-body iPhone 5S will still be available.  Unfortunately, the "low-cost" iPhone will ultimately hurt the iPhone product line because the production family, as a whole, will lose its image as a extravagant product (perhaps to a point where the iPhone may be garish).

Some might have seen this satire parody about the next iPhone on YouTube...

 ... And when I heard "an iPhone for the peasants," the image of the iPhone becoming more affordable was suddenly revolting.

I don't have anything against those who want a low-cost iPhone but in the long run it will surely hurt Apple's whole company image.

Apple has made these ridiculously expensive, even overpriced pieces of technology.  The iPod Touch, the Mac Pro, the MacBook Pro - all of these products are mostly out of reach for an average American's budget, yet are so coveted as technology products to the whole world.  (One of these days I'll write a blog post about how ludicrously overpriced Apple products are - but that's in the future.)

Just making an Apple product that's more affordable?  That's a bunch of bullcrap.  Overpricing coveted Apple technology has ironically - and paradoxically, as well  - made the company the most valuable American company.

Bottom line:  Apple making an affordable version of the next iPhone is whacked out with its history of selling overpriced technology and will ultimately ruin its success as the most valuable American company.