The fact that this criticism was uttered by the Google CEO is deliciously ironic.
I do think, however, that it is a valid point in general: I would love to see Apple selling low(er)-cost devices that appeal e.g. the Indian market, so that they too can benefit more from the privacy advantages of an iPhone. While I do see that, at first (and second) glance this would be hard to reconcile with Apple's general strategy and image, I'm sure a company with Apple's resources would be able to "sell" this move well.
Apple is selling older models in those markets e.g. iPhone SE/6.
And remember that India is rapidly moving towards a typical middle class society and so people want premium products to show off their new found wealth.
People look at older models as older models, even though they may be good enough and may provide software updates for longer compared to many Android phones in that price range. It also looks odd (to the purchaser) when one is buying something that's a four year old model. Android phones, with the range of hardware differences, don't yield to such simple comparisons, and many of them offer slightly better hardware Year on year at the same price points.
Apple probably needs to come up with newer, refreshed (hardware), low priced models to beat this. But I wouldn't hold my breath on such a move happening.
I do think, however, that it is a valid point in general: I would love to see Apple selling low(er)-cost devices that appeal e.g. the Indian market, so that they too can benefit more from the privacy advantages of an iPhone. While I do see that, at first (and second) glance this would be hard to reconcile with Apple's general strategy and image, I'm sure a company with Apple's resources would be able to "sell" this move well.