Earlier quoted context omitted.
It's been true for almost every business. "Cheap and good enough" usually trumps "excellent but expensive". Ikea, McDonald's, Ryanair, AliExpress, Aldi - these brands prove that catering to poor people is more profitable than catering to rich people simply because there are so many poor people that their collective spending power outweights the one of rich people.
Well, not universally. It’s a tradeoff. If what you said was universally true Apple wouldn’t exist; Spirit Airlines wouldn’t be bankrupt, etc.
Spirit was broken by oil prices which everyone pays the same for. (There is no cheaper jet fuel alternative).
Not a good comparison to the point of wrong conclusions.