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Apple’s Phil Schiller Shoots Down Idea of New Cheap iPhone

by Todd Haselton | January 10, 2013January 10, 2013 12:00 pm PST

Rumors have been spiraling around the web from both The Wall Street Journal and Bloomberg suggesting that Apple is well on its way to building a cheaper version of its iPhone. We’ve long argued that Apple probably won’t take that path. It doesn’t make sense and it’s not how the company has historically operated. Usually, a “cheaper iPhone” is simply last year’s model, or a model that’s two generations old. That’s why the iPhone 4 and iPhone 4S are still available.

Still, people seem to think Apple is creating a new budget iPhone. Apple’s Phil Schiller recently shot down the idea, however. “Every product that Apple creates, we consider using only the best technology available,” he told Shanghai Evening News. “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 about 20%, we own the 75% of the profit.”

Exactly. That’s what we’ve been saying, too. Ever since the iPhone 4, Apple has stuck to premium build materials. It’s obviously working. Why fix something that isn’t broken?

Todd Haselton

Todd Haselton has been writing professionally since 2006 during his undergraduate days at Lehigh University. He started out as an intern with...