Apple: Cheap iPhone will 'never be in the future'

The company's head of worldwide marketing shoots down rumors of a less-expensive smartphone.

By TheWeek.com Jan 11, 2013 2:34PM

The Apple Inc. logo is displayed on the back of the new MacBook Pro David Paul Morris, Bloomberg via Getty ImagesEarlier this week, The Wall Street Journal and Bloomberg independently confirmed with their sources that Apple (AAPL) was working on a cheaper iPhone built from lower quality parts -- which we,  at TheWeek, took with a dose of healthy skepticism. 



On Thursday, those rumors were shot down by Apple's SVP of worldwide marketing, Phil Schiller, who told the Shanghai Evening News that a potentially cheaper iPhone will "never be in the future of Apple products." 


The Next Web confirmed with Apple that the interview was official. 


Here's what Schiller said:


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… 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 20 percent, we own 75 percent of the profit.


Still, perhaps we should take this new report with a grain of salt. Early Friday morning, Reuters rescinded a report piggybacking on the Chinese original, titled "Apple exec dismisses cheaper phone as a market share grab -- report," claiming the Shanghai Evening News' article made "substantial changes to its content" after it was published. BGR notes that the "full extent of the updates is unclear and the original article remains posted on the Shanghai Evening News  website." 


Meanwhile, Bryan Bishop at The Verge points out that while Schiller's comments appear to contradict reporting by the WSJ and Bloomberg, Apple has demonstrated an obvious willingness to depart from public statements in the past. 


It's important to remember that Apple has never made a habit of making binding public statements about new products before they are released. The company had indicated numerous times it wasn't interested in pursuing iPads in sizes below 9.7 inches in the past, for example; the iPad Mini was then announced earlier this year.


More from The Week

Tags: AAPL
22Comments
Jan 11, 2013 4:55PM
avatar

'In fact, although Apple's market share of smartphones is just 20 percent, we own 75 percent of the profit."

So they're essentially bragging about being overpriced.

Jan 11, 2013 5:03PM
avatar
Sorry, in this economy  I cannot justify buying a $400 phone, not matter how cool it is......
Jan 12, 2013 4:22PM
avatar

I just kinda feel that Apple has many, fickle, silly consumers, that are not smart shoppers.

Worst then the guy that has to have a new car every year or two...IMO.

Jan 14, 2013 9:25AM
avatar
Didn't they just sell-out the iPad by making an IPad mini.... which is still completely ridiculously over-priced.  I have an iPhone and I can tell you why the iPhone 5 sales were flat... cause they never sold the stupid things.  When I went to upgrade my phone, I was told I could get an iPhone 5, but I'd have to wait 2-3 weeks for it to get there.  ha.  I have an iPhone 4s.  The other day I saw a commercial for the iPhone 5, saying you can put your phone on Do Not Disturb, but can allow certain groups to come through.  I pulled out my iPhone 4s and found out I can do the same thing!!!   At least it's better than the Galaxy's 'watch-how-easy-it-is-to-pirate-music' phone.
Jan 11, 2013 3:03PM
avatar
Apple's suffering from a narrow product line and the legacy of Steve's arrogant narrow mindedness. However, Apples consumer fans that require simplistic dumbed down mobile devices will prevail awhile longer.
Jan 11, 2013 7:19PM
avatar
So be it....I'll just buy Samsung then!
Jan 12, 2013 12:29PM
avatar
good stuff,overpriced,have lost direction,never make 900 by year end. good time to sell.
Jan 14, 2013 9:13AM
avatar
Apple would do well to lower its prices on their iPhone or be eaten up eventually by the competition..  They have been afforded a great play on their stock over the years because of innovative tech but the competition is eating at their heels. The profits they have made are good but very little has been shared with stock holders. Too much greed.
Jan 11, 2013 9:03PM
Jan 11, 2013 4:51PM
avatar

hey keshav kumar, obviously  your some momma's boy punk, trying to talk talk tough, with your limited online language of stfu. guys like you obviously like to hide, and think your some big bad dude.

 

So do us all a favor, and go away before the big boys come along and teach you a lesson, and you get hurt

Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

108
108 rated 1
257
257 rated 2
439
439 rated 3
626
626 rated 4
499
499 rated 5
530
530 rated 6
713
713 rated 7
522
522 rated 8
339
339 rated 9
136
136 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
UPLULTRA PETROLEUM Corp10
EOGEOG RESOURCES Inc10
SWNSOUTHWESTERN ENERGY COMPANY10
TAT&T Inc9
COPCONOCOPHILLIPS9
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.