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Apr 12, 2001
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Apple marketing chief Phil Schiller is accompanying CEO Tim Cook on his trip to China, and the Shanghai Evening News has published an interview [Google translation] with Schiller in which he addresses recent rumors of a cheaper iPhone. The report was first brought to our attention by Macerkopf.de, but The Next Web has since obtained a better translation and confirmed with Apple that the report did indeed stem from an official interview with Schiller.
Interviewer Huang Yinlong spoke to Schiller about Apple's products in China who said that "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."

"At first, non-smartphones were popular in the Chinese market, now cheap smartphones are more popular and non-smartphones are out," Schiller added later. "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_iphone_5.jpg
Schiller's comments of course do not specifically rule out the possibility of Apple launching a lower-cost iPhone, but he does make clear that Apple will not sacrifice quality in order to garner a greater unit share of the market. The philosophy should not be a surprise to anyone familiar with Apple, but it does provide reassurance that Apple will fill a very specific niche if it does pursue a lower-cost iPhone, opting to pursue its own course rather than being letting competitors define where it will play in the market.

A similar approach was revealed with the iPad mini late last year, which debuted at a base price of $329, considerably higher than numerous competing products in the range of $199 or lower, and even above the $249-299 expectations of many observers. But for Apple that $329 opens up an entirely new segment of the market below the $499 full-size iPad and even the $399 iPad 2.

It in its report earlier this week echoing The Wall Street Journal's claims of a cheaper iPhone, Bloomberg claimed that the cheaper iPhone could sell for $99 or $149 (presumably on a two-year contract), which would be just $50-$100 below the iPhone 5 and in line with the iPhone 4S currently offered alongside the iPhone 5. But even a $50-$100 discount on Apple's latest-generation hardware could attract new customers and especially bring down upfront costs in countries where carrier subsidies are not offered.

Article Link: Phil Schiller Says Apple Wouldn't Sacrifice Quality for Market Share in a Cheaper iPhone
 

MarximusMG

macrumors 6502a
Jan 21, 2009
699
4
Denver
In other words, there will be a lower cost iPhone, but the quality will "not be sacrificed". Just an attempt to throw people off of the rumors, IMO.
 

bbplayer5

macrumors 68040
Apr 13, 2007
3,128
1,122
Like them or not, iPhone still has the best build quality of any phone ever made.
 

iAco

macrumors regular
Sep 19, 2012
132
0
No ****.

You'd have a severe mental illness if you think Apple will go from metal to plastic.

I'd be disgusted.
 

jmcrutch

macrumors regular
Jul 27, 2010
249
79
Proving once again that when it comes to Apple, most media pundits and even financial "analysts" don't know $h|+ about what Apple's plans are.
 

sbrhwkp3

macrumors 6502a
Jul 17, 2005
551
73
Lake George, NY
So in other words, a bigger iPhone is coming, but it's not cheaper. This is exactly what I'm looking for. I want a screen like the Galaxy SIII. I don't have little dainty hands like some people who complained about that size of a phone.
 

Ayemerica

macrumors 65816
Oct 18, 2011
1,058
157
Atlantis but in space
Yes because plastic is weak. :rolleyes: In all seriousness people that say plastic is cheap are the same people who think there is only one kind of plastic in the entire world.
 

iAco

macrumors regular
Sep 19, 2012
132
0
Not really, I include durablity and quality control in build quality and the iphone 5 scuffing issues clearly is a knock in build quality.
That has nothing to do with build quality.

Apple's build quality is superb.

I bet you it's better than 99% of the apliances/electronics you run into your daily life.

That's normal ware and tare. I wish it would be made of a much more durable material, but if Apple plans on releasing a new phone every year, then it doesn't make economic sense for them.

Either way, phones come and go. If you don't like the scuffing, get a gigantic condom for it.

I don't like condoms.
 
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Born Again

macrumors 68040
May 12, 2011
3,996
5,166
Norcal
Apple should make a cheaper phone for other markets

In the USA a cheaper phone won't really matter due to subsidies
 

BergerFan

macrumors 68020
Mar 6, 2008
2,168
62
Mos Eisley
So basically Panzarino thinks that Apple will do with phones, what other companies did to laptops, with a netbook-esque equivalent?
Why would they do that, when the iPhone 4S and 5 will be excellent 'cheaper' devices when the next iPhone launches?
 

iAco

macrumors regular
Sep 19, 2012
132
0
Why ? The back of the 3GS was plastic and quit popular.

The first iMac was plastic.

Stop looking backwards.

Plastic feels cheap. When you buy a Apple branded object, it should NOT feel cheap. It also goes against everything Apple stands for.

Plastic iPhones are like knock off LV bags. No integrity. And it's not even a natural material. Non-recyclable. The idea is completely toxic. Stop dreaming people.
 

bobenhaus

macrumors 65816
Mar 2, 2011
1,024
487
The first iMac was plastic.

Stop looking backwards.

Plastic feels cheap. When you buy a Apple branded object, it should NOT feel cheap. It also goes against everything Apple stands for.

Plastic iPhones are like knock off LV bags. No integrity. And it's not even a natural material. Completely unrecycable. The idea is completely toxic. Stop dreaming people.

Apple has no choice but to go cheap if they want to be able to compete in the future. Deal with it.
 

AppleGuesser

macrumors regular
May 1, 2012
240
102
Macon, GA
Why would Apple jeopardize their image of high quality devices which clearly drives the sale of iPhones for a sub par, budget phone? Doesn't add up. Glad Phil put this rumor to bed quick. Thanks Phil!
 

macaddict06

macrumors regular
Jan 17, 2006
202
132
about 3 meters from here. *points*
Apple should make a cheaper phone for other markets

No, they shouldn't, and this is exactly what Schiller is talking about. The biggest asset that Apple has is not it's iPhone, iMac or iPad. It's the company's image. Apple stands 100% behind their products, so it would make no sense for them to make a cheaper phone just because someone wishes it were cheaper.
 
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