By Jimmie Geddes email: firstname.lastname@example.org | Jan 14, 2013 12:30 PM EST
News of a cheaper iPhone dominated the tech headlines last week, suggesting that Apple was going to take more of a competitive approach to its family of smartphones. The one advantage almost every other smartphone maker has over Apple is that they offer smartphones from high-end to low-end. Apple has and will always be focused on the high-end, or as Apple made Reuters to retract a news story that claimed Apple's Senior Vice President, Phil Schiller was quoted in a Reuter's article as saying:
"Cheap smartphones will not be developed in order to grab market share away."
In a retraction published by Reuters the quote has changed and it now says:
"Apple wants to provide the best products, will not blindly pursue market share."
If that's not confirmation of a low-cost iPhone in Apple-speak, I don't know what is. Apple has been using a 1 year cycle when it comes to releasing new iPhones and iPads. It is expected to shift to a new 6-month cycle. Apple sells in record numbers but there is part of the year that customers start putting off iPhone and iPad upgrades because they know when Apple usually releases the latest iPhones and iPads. Apple's rivals also pretty much know when Apple is going to release a new iPhone or iPad and have time to prepare accordingly. Apple needs to release new products when they feel it is time, not when the calendar dictates as it has been in the past.
Apple is going to offer more choices of getting that "best product" experience by diversifying its smartphone lineup just like it did with the iPad lineup. A lower cost iPhone will be marketed as "still an iPhone", just like it exclaimed the "iPad mini was still an iPad".
Apple would never think of using the word "cheap" to describe anything, "best products" sounds much better. The story Reuters ran went completely against all the rumors and leaks that have recently been pretty much confirmed that Apple will introduce a lower-cost iPhone this year.
The fact that Reuters had to retract its original article with an update that basically contradicts its first article should be proof to anyone that Apple will bring a lower cost iPhone to the party. Apple also wants Reuters to make it clear that in doing so (i.e., n bringing a lower cost iPhone to the market), Apple will not bring a cheap iPhone to market, it will bring the best product.
So, if any new iDevice happens to have a cheaper price, please don't ever even think that Apple is bringing out a cheap product. Why? Because you'll get schooled and be made to retract your story/thoughts/whatever, something that poor Reuters was forced to do.