Apple made $7.6 billion USD in net income in the last quarter; I'm pretty sure they have plenty to cover the cost of repairs because of poor manufacturing quality.

That's not how it works. They're going to sell it for as much margin as any given market can optimally support. This is basic supply and demand.

Agree.

Additionally letting Apple (and other big companies)[0] clean up their own mess creates a perfectly aligned incentive to avoid messing with consumers again.

Edit: clarify

[0]: I actually like big companies. It's mostly just when they, -in spite of massive profits, do stupid things e.g: like whining against basic worker or consumer protection etc that they annoy me.