A classic marketing 101 strategy:
- Blanket the market with cutting edge, high end product.
- Get the brand name out and known to people for its aspirational goods.
- Once market is saturated, introduce a cheaper, more cost effective riding on the same brand name as the initial product.
- Lastly, introduce a next generation product that would leap frog the first one introduced.
- Rinse and repeat.
Lenovo (Thinkpad series), Apple (Macbook series), Samsung (Galaxy series), etc.