It’s perfectly normal to dump product if it drives sales of your main product. In this case it’s the iPhone that benefits from cheap apps. The App Store has been instrumental in keeping prices down - a major way they do this is by not allowing demos. Who’s going to risk $50 without seeing it first?
I’d refer you to this Joel Spolsky article which explains it: https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/
You see this strategy everywhere in tech. It’s not by accident.