The bike manufacturer makes bikes of different quality/component combinations at different price levels for different markets and wholesale/retail customers.

Just like numerous other manufacturers. To use an auto manufacurer as an example - Toyota makes the Camry and Lexus with different component levels than it does for the Yaris and Corolla. It doesn't mean that IOW the Corollas and Yaris are "POS designed for the huddled ignorant masses" who drive their car any differently than the high priced models.