In an interview to Chinese newspaper Shanghai Evening News, Apple SVP of worldwide marketing Phil Schiller addressed the rumors that a cheaper iPhone will not be developed to draw away market share.
Over the past few days, analysts had speculated that Apple will come out with a lower priced iPhone in China and other emerging markets. Analysts saw how Apple was steadily losing its market share to its Android competitors and considering the popularity of the iPad Mini, a cheaper iPhone could revitalize interest in Apple products.
Schiller insists his company is not planning to develop a cheaper iPhone and only uses the best technology available for their products. “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.” he said according to a translation by The Next Web.
A “cheaper” iPhone may not be in the pipeline as it usually denotes low-quality materials and shoddy construction to meet a price point. Apple has always been known for top-notch phones and the company isn’t likely to tarnish their reputation to target the “cheap” smartphone market. But they could still be looking for ways to enter the emerging market by looking for top-quality materials but at cheaper prices.