Same as for the demand for a small-screened smartphone. There's a vocal minority and they do exist, but not in numbers that can really justify the segment, especially considering it's one that makes less money for the manufacturer. If profit on the spartan model is $W, and you sell X of them, vs the luxury model, which you make $Y profit, selling Z units; and it turns out that $W * X is much smaller than $Y * Z, you'd be a fool to try and go after the spartan market because of some weird emotional connection to the product. X is definitely non-zero, but $W * X just small enough that it's not clear that it makes for a winning product all is said and done. I'm on an iphone SE 2nd gen. The fact that Apple made one is proof that X is non-zero. The fact that they didn't announceme a 3rd gen today is also a comment on how small X is.