1. a cheap stripper model used to bring people into the showroom
2. an expensive deluxe model with every bell and whistle. It's primary purpose is to frame the next one as being affordable:
3. the mid-price mid-range one you're expected to buy.
Of course, the price-is-no-object people will buy (2) anyway, and that's just extra gravy.
You'll see this technique used across all sorts of product lines.