Isn't the S23 FE a midrange phone? I see it listed for $599 -> $549. The previous A54 5G was a $449 phone, so yes it's $100 more, but that still seems a midrange phone to me
$100 is a huge difference in price. Many
entire phones cost that much.
The differentiation between S23 FE and A55 makes a huge amount of sense in many global markets. Not in the US any more because of reasons other people mentioned (contract pricing), which is why Samsung is dropping the lower end SKU in that market, I guess. It's still being offered globally though because it's a SKU that makes a lot of sense, especially in markets where people pay outright for their phone.
My guess is that Samsung is taking a cue from Apple; their "budget" devices are the flagship devices from the previous year (or year before that).
Samsung has never done that, and they don't seem to be starting. They've always offered a full product line for all budgets, starting at the J-series and going all the way up to the Z Fold series. They're still continuing to offer the A-series in the US, just the lower end A3x. This is one of the reasons I like Samsung compared to Apple; if you're not ultra rich, you don't end up feeling like you getting warmed over leftover scraps from what the rich couldn't finish last year. There's a brand new model every year made just for you.
Since most people in Canada and the US simply get whatever Samsung or Apple device is free or cheap from their carrier when they renew their contract for another two years, it means there's not a lot of incentive for the carriers to sell a mid-range device.
I don't know about the US, but in Canada, the latest flagship Samsung is typically $20-$25/month on premium plans, last year's flagship is $10-$15/month on premium plans or free on midrange plans, and something like the A-series or J-series is free on budget plans. There is an incentive to sell midrange and budget phones, because they're the freebie phone that comes with the cheapest service contract.
This is a sales model of the carriers though, Samsung continues to make models for all budgets.