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Remember the Cadillac Cimmeron? It’s probably best that you don’t. It was a rebadged Chevy Cavalier that Cadillac sold in the early 80s. I don’t think anyone around at the time would argue that it did anything BUT damage Cadillac’s image. Now that example is slightly different than a budget iPhone because it was not an original product but a rebranding, but a subpar product with your name on it is never good if you are trying to position yourself as a premium brand. If this hypothetical cheaper iPhone was still a desirable product, sort of a “premium inexpensive” product, that maintained most of the quality and important features but had a smaller lower res display and plastic body, it might be ok. If it was a sluggish, poorly performing piece of hardware, then it might be the perfect companion while you are rolling in that Cimmeron.