"Apple are fortunate enough to be able to absorb a $10bn loss without flinching"
Apple are also comfortably in a position to continue selling the current iPhX -- dropping the price (i.e. the margin, effectively), step-wise, by increments, on a schedule, to clear out all stock, keeping the upstream production lines humming, and exhausting any current 'over-production' of screens. It makes some sense to do so; some profit is better than none, even if it isn't the 'usual' profit. And, of course, doing so would create a bit of buzz. Arguably, it is also a way they can get larger numbers than otherwise would -- at current prices -- to upgrade. (A Windows 10 move, with carrot, rather than stick). Much depends, though, on what's in the pipeline for new features, chips, etc..