Well, it is not a new design. It is the same phone they have been making for 6 years, with a new chip and a new camera in it. I am sure it wouldn't take them that long to design it. And since they have been manufacturing them for 6 years, I don't get your point about manufacturing time.

You certainly choose pricing within those two months.

It is not a coincidence that MSRP is announced at a "sane price point" (uncommon for Apple, which sells a monitor stand for $1000) right when the mobile phone market shrinks.

Apple's mobile handset prices have been cut by 10% or more in China. In the US, new iPad Pro and Macbook Air prices have been discounted about 20% by authorized retailers and new old stock of the fully loaded MBP15 was discounted 35% by Best Buy a couple of days ago.

Apple typically reports a profit margin of about 1/3 for its devices on average, and 2/3 for its services. My understanding based on gross margin numbers from competitors is that handsets fall on the higher side of that average, and PCs on the lower side. In times when consumer demand for devices is expected to be price-elastic (eg when 15 million Americans get laid off in the span of three weeks and vast numbers of people are staying home so they don't need to replace mobile devices as frequently), margin can come down to increase unit sales and optimize net profit.

Handsets are not sold in a free market; prices are set by Apple and its partners. If they don't bring the price down, there are some consumers who will say "this is nice; I want it, but I can't afford it right now." That cohort of near-miss buyers would constitute a deadweight loss -- an inefficiency between supply and demand, caused by the pricing scheme set by Apple itself.

You can entice those shoppers to buy anyway (ie, eliminate the market inefficiency) by reducing the price. Pricing products expensively to widen gross margins works to increase profit in a time when demand is strong, but when demand is depressed and consumer discretionary spending becomes scarce, prices must come down to optimize for the new demand picture.

On a separate note, this particular device re-uses many components from past Apple devices (as did the previous SE), so you ought to differentiate the timespan of its development cycle from a new flagship handset for which a new processor is developed and most third-party components are being implemented for the first time.