Driving prices down expands the market, further empowering the seller, further driving process down,....

Apple can win at this game, all they need to do is price it 25% over the best-quality competitor, as the market is willing to pay a premium for Apple's brand and perceived quality. Apple's distinct advantage is not in engaging in self cannibalizing price wars with the cheapest competitor, but being at the intersection of "High Quality " and "Affordability"

But whoever's advising this pricing needs to be held accountable for their input. Unless they really intend for this to be a vanity purchase, like a Hermes bag. Just remember, none of the designer brands have market caps comparable to mass market brands, so what is sold Apple upto?