Cheaper iPhone Not On The Cards For Apple, Says Phil Schiller

By Sumit Passary email: | Jan 12, 2013 11:51 AM EST

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Rumors have been flying thick and fast that Apple will launch a cheaper iPhone perhaps in different sizes as well multiple colors. However, Apple's Phil Schiller, Senior Vice President of Worldwide Marketing, has put an end to rumors by saying that cheap smartphones "will never be the future" for the company.

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Schiller gave an interview to Chinese newspaper Shanghai Evening News and addressed the issue of the rumors regarding a cheaper iPhone.

"Every product that Apple creates, we consider using only the best technology available. This includes the production pipeline, the Retina display, the unibody design, to provide the best product to the market," said Schiller.

Schiller further added "At first, non-smartphones were popular in the Chinese market, now cheap smartphones are more popular and non-smartphones are out. Despite the popularity of cheap smartphones, this will never be the future of Apple's products. In fact, although Apple's market share of smartphones is just about 20%, we own the 75% of the profit."

Schiller's interview with Shanghai Evening News debunks the cheaper iPhone rumors, which was first reported by Wall Street Journal. Bloomberg had also reported that Apple was in discussions with U.S. carriers regarding an iPhone in the $99 to $149 price range.

Previously, Apple said that the company will not launch a smaller iPad, but Apple did release a smaller 7.9-inch iPad mini in October 2012. So, even though Schiller has indicated that an inexpensive iPhone is not on the cards, we never know what the company is thinking behind the scenes and Apple may just end up retracing its steps like it did with the iPad mini.

The iPhone is the most popular product Apple has sold to date and the most sold singular smartphone ever. However, the price of the iPhone has kept away many potential buyers with a low budget. These buyers have gravitated towards entry- or mid-level smartphones and if Apple wants to expand its market share, launching an entry-level iPhone wouldn't be such a bad idea after all.

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