Hugo_ZA, lower segment does not equate to "cheap". Can do something very smart for less without quality compromises. If Jobs/Apple doesn't do cheap then the iPod Nano cannot be considered cheap although it is in a lower segment than the iPod Touch, for example. The Nano's functionality is less, and it is smaller, but the quality is still good, and this can be done with a phone too (trust Apple to come up with something unexpected). In my mind it is possible without going "cheap".
A good quality all plastic iPhone without a retina display, gyroscope, and GPS (as examples) is possible, not so?