Brand devaluation
With the exception of the iPod, Apple make devices that are in a class of their own. That's not a fanboy comment that they're better, they just present themselves as being the Ferrari of their industry. The apple symbol, like the horse is designed to represent quality and class. There's a reason Ferrari don't sell a budget car for everyone, it would take away from what the badge represents. They reach out to the wider market with Fiat, Alfa, Dodge etc.
O2 have GiffGaff, AOL has TalkTalk, all the same companies with different 'faces' for different target markets. It takes a very special kind of company to pull off being a 'one brand fits all' and it really has to have been the aim from the start, it's easier starting with an 'every day' range and then introducing a premium range as you have something to add at a premium, you are only able to take away if you're to go the other way round. Take away too much and no-one will bother buying the new item and it will damage the brand as something with their logo on is widely seen as being rubbish, don't take away enough and people who bought the 'premium' version feel robbed and the brand is damaged because it becomes very obvious that they've been ripping off for years with a fairly average product that they could have been selling for much less.
I wouldn't want to see any company that employs thousands of people die out so I say good luck, but I'll stick with my Android device for now.