Samsung was aiming to make faster, cheaper and better smart phones against iPhone. Apple saw the challenge and planned to change. However Apple lunched low price phones which are not as low as we expected. Moreover, low price strategy is not a smart idea to win the market share. Samsung is getting there, what should Apple do then.
I assume by Apple's attempt to make a cheap phone you are referring to the 5c models which was an attempt to get a cheap device out to compete with Samsung. Apple as a company have taken a very unique view on the market with their phone production as well as all other electronics they produce. Apple makes very expensive phones that they can promise will have very very sound software engineering and decent hardware engineering, the exception to the hardware is when you drop a caseless phone. Those things always crack. Samsung is making faster, cheaper, and better phones. Apple is trying to do the same with the exception of making their phones cheaper. Apple's share of the market is centered on consumers who are buying for their convenience Apple devices work very smoothly and the Apple App store is magnificent.
Samsung is being very competitive by lowering their prices, but Apple is doing a great job as it is. People will continue buying IPhones for their convenience. In fact by having high prices Apple is telling the consumer that they are paying for a quality product.
Samsung has a long way to go and to answer your question Apple should continue firing out new phones and OS people love that new stuff and until Apple messes up or until they become to conservative much as Call of Duty did by making the same game for like 10 editions. But people will keep on buying Apple. And Samsung needs something HUGE in order to grab people's attention, because frankly people aren't going to switch to a Galaxy because you can now pay an additional $300 for a watch that saves you the convenience of pulling your phone out of your pocket. (It would be an awesome watch if it was a stand alone product and you could make calls on it, but you still need a Bluetooth connection to your Galaxy.
Based on the experience of Nokia, quality is not the most important factor for price anymore. Consumers do not care if their iPhone can be used for three or five years. I personally prefer to change my phone within two years. People actually is paying for the innovation of Apple. Currently Apple has a image of innovation since consumers are get used to connect innovation with Apple brand. Nevertheless, after several years, people will realize that they are paying for similar products with higher price. Or there are other innovative brands break into the market, Apple will immediately loss its position.
Yea I agree with you completely. The thing Samsung and other companies did wrong was take forever to release a smartphone, just the same in the tablet market. By the time they released good products Apple had a firm foothold and the market and was able to develop a great product. But because of how behind the other companies were people seem to be pretty set with their Apple devices. Too bad Blackberry kept making bricks, they could have done something I thought.