Hey there.
I didn't mean, at all, for this to be a criticism of PRS. It just seems like pretty standard business practice to not allow a lower-tier product cannibalize sales of a higher-tier product from the same manufacturer. I wasn't suggesting that they were intentionally crippling the SE range. I like the SEs. I like the S2s. But, i don't think it would make a lot of sense to sell either of those ranges with the same pickups as the core line, as there needs to be a 'clear' differentiation in 'performance in order to 1) justify the core prices; 2) protect the brand, since it would be seen as a negative against the core if the SE sounded the same/as good.
I'm sure that PRS is mindful of the basic niche each line carves out. But, that hasn't stopped them from creating fantastic standouts within the lines that push the boundaries. You only have to look at the Mark Holculm model in the SE line for an example. PRS markets, just as do all successful companies, but the don't let arbitrary boundaries interfere with design.
As evidence that PRS is more interested in the product itself than stark delineation between the various lines, I point to the S2 and CE lines that fill the gap between SE and Core, blurring the distinctions. More evidence can be seen with the artist options, signature lines, wood library runs, etc. blurring the delineation between core and PS.
"Rather, the case is that PRS designs its guitars to be the best they can be at the target price point."
I guess i sorta agree with this, although i kinda question that there are very specific price points in mind. Like, a Tremonti Custom SE retails for what, $xxx? They couldn't sell the same guitar with USA pickups for $xxx+50? Might they not sell even more of them? I think they have a 'range' of price points they target, which is why the SEs come in at different prices. They end up at whatever they end up at, but they do go into the design process knowing they can't have an SE selling at over a grand.
There are specific price points for each individual models, not for entire lines. Each guitar model is considered individually. The "lines" themselves are more about general production methods than they are about specific, line-wide price objectives as you suspect.
SE - entry level, overseas manufacture to PRS specs.
S2 - US manufacture with labor and material cost savings like scarf joint necks, plainer wood, less carve, etc.
CE - similar to S2 objectives, bolt on neck.
Core -
Artist -
Wood Library -
...
PS -
I trust I don't need to expand on those.
I hilighted the thought above because it isn't mine. I have heard Paul state exactly that many, many, many times.