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

[MacRumors]

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'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]

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.

[mabhatter]

Originally Posted by MarximusMG

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.

I think Apple might "repackage" the lower end phone at some point. By repackage, keep the iPhone 5 internals, but ditch the aluminum case for a polycarbate one with a LOT more drop resistance and more protection for the screen.. Like a 3GS.

I went into an AT&T store to ask about an iPhone upgrade and they all but ran me out of the store because iPhones are "so fragile" (or people in my town are really dumb) They REALLY were hard selling the Android phones, any Android phone over iphones.

About the only valid argument they had was that the iPhone glass fronts and backs get a LOT of returns for minor drops that might not ruin other phones. If the concen is that big at AT&T, I could see Apple caving to pressure for one styled like the 3GS that could handle a little more "living".

[Shane 77]

Originally Posted by mabhatter

I think Apple might "repackage" the lower end phone at some point. By repackage, keep the iPhone 5 internals, but ditch the aluminum case for a polycarbate one with a LOT more drop resistance and more protection for the screen.. Like a 3GS.

I went into an AT&T store to ask about an iPhone upgrade and they all but ran me out of the store because iPhones are "so fragile" (or people in my town are really dumb) They REALLY were hard selling the Android phones, any Android phone over iphones.

About the only valid argument they had was that the iPhone glass fronts and backs get a LOT of returns for minor drops that might not ruin other phones. If the concen is that big at AT&T, I could see Apple caving to pressure for one styled like the 3GS that could handle a little more "living".

AT&T's concern is they pay Apple more $ than Android makers and they get incentives and kickbacks from Samsung!

[tCruzin4lyfe]

Originally Posted by mabhatter

I think Apple might "repackage" the lower end phone at some point. By repackage, keep the iPhone 5 internals, but ditch the aluminum case for a polycarbate one with a LOT more drop resistance and more protection for the screen.. Like a 3GS.

I went into an AT&T store to ask about an iPhone upgrade and they all but ran me out of the store because iPhones are "so fragile" (or people in my town are really dumb) They REALLY were hard selling the Android phones, any Android phone over iphones.

About the only valid argument they had was that the iPhone glass fronts and backs get a LOT of returns for minor drops that might not ruin other phones. If the concen is that big at AT&T, I could see Apple caving to pressure for one styled like the 3GS that could handle a little more "living".

They push Androids on your for one simple reason, because they were told to. As we all know by now carriers don't make as much money off selling iPhones than they do with Androids and Windows.

[bbplayer5]

Like them or not, iPhone still has the best build quality of any phone ever made.

[blackhand1001]

Originally Posted by bbplayer5

Like them or not, iPhone still has the best build quality of any phone ever made.

Not really, I include durablity and quality control in build quality and the iphone 5 scuffing issues clearly is a knock in build quality.

[sbrhwkp3]

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.

[iapplelove]

Originally Posted by sbrhwkp3

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.

I have pretty good sized fingers and still don't want a screen that big in a smart phone. It's not practical imo

[sbrhwkp3]

Originally Posted by iapplelove

I have pretty good sized fingers and still don't want a screen that big in a smart phone. It's not practical imo

That's fine, but the GSIII sales numbers don't lie. A lot of people want a phone that size, including myself.

It was only a matter of time before the iPhone line started to get fragmented. How many different iPods came after the original iPod? I'm honestly shocked it has taken this long.

[Ayemerica]

Yes because plastic is weak. 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]

Originally Posted by blackhand1001

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.

[hamkor04]

Originally Posted by iAco

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.

so ware and tear, huh?
the best 2013 consumer electronics review so far

[NorEaster]

Originally Posted by iAco

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.

Really? Last time I checked, the buttons on my stove, microwave, dish washer, fridge, washer, and dryer haven't failed me in the 8+ years that I've had them. The home button on my iPhone on the other hand.....not so much. Same goes for my - volume button.

[krravi]

Originally Posted by NorEaster

Really? Last time I checked, the buttons on my stove, microwave, dish washer, fridge, washer, and dryer haven't failed me in the 8+ years that I've had them. The home button on my iPhone on the other hand.....not so much. Same goes for my - volume button.

IMHO, the Apple phones build quality is superior. I say this after handling so many electronics and appliances for more than 25 years... The only other phone that *I* love in terms of build quality is the old Motorola StarTac.

The first time I bought an Apple device was a iPhone 3GS. The volume control rocker button had a definite feel to it, it wasn't a click, but a subtle depression that gave you feedback as to if you pressed it or not. That level of detail and subtlety was what attracted me to Apple and ever since I have been impressed with their products. Okay had a yellow tint issue with their iMac 21" etc.. but that was more of a production issue than design.

There are so many other audio components from TEAC and Pioneer that have amazing build qualities but, thats another topic.

[Eric E. Schmidt]

Originally Posted by NorEaster

Really? Last time I checked, the buttons on my stove, microwave, dish washer, fridge, washer, and dryer haven't failed me in the 8+ years that I've had them. The home button on my iPhone on the other hand.....not so much. Same goes for my - volume button.

poles apart in frequency of use. if you were a chef or ran a sizable household you'd have an argument.

[BornAgainApple]

Originally Posted by NorEaster

Really? Last time I checked, the buttons on my stove, microwave, dish washer, fridge, washer, and dryer haven't failed me in the 8+ years that I've had them. The home button on my iPhone on the other hand.....not so much. Same goes for my - volume button.

Oh please. How many times a day do you press the buttons on your appliances? Nowhere near as often as you probably use the home button. I'm an average user, and I probably press the home button dozens of times a day and I've never had an issue with the three iPhones I've owned (2G, 4 and now 5).

----------

Originally Posted by Digital Skunk

Took you long enough to post this.

Apple's QC hasn't been as high as it was in 2005. It's not sinking fast, but it sure is on a downward slope.

Let's also not forget the quality of certain pieces of software.

There's an old saying: the more you make, the more you break.

[chrisbru]

Originally Posted by NorEaster

Really? Last time I checked, the buttons on my stove, microwave, dish washer, fridge, washer, and dryer haven't failed me in the 8+ years that I've had them. The home button on my iPhone on the other hand.....not so much. Same goes for my - volume button.

I bet you've pressed the buttons on each of those devices far less times than you have your home button. Think about it... Things wear out with use, your phone just gets a LOT of use.

[RobertMartens]

Originally Posted by iAco

That has nothing to do with build quality.

That's normal ware and tare.

Did you say 'tare' a you talking about the common vetch?

----------

Originally Posted by FireFish

But if you get to know these guys like I have,

Awesome, you go drinking with these guys. Tell us more

[MacDav]

Originally Posted by iAco

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.

A regular size condom would work fine, but you would need a gigantic condom for the S3.

[Swift]

Originally Posted by blackhand1001

Not really, I include durablity and quality control in build quality and the iphone 5 scuffing issues clearly is a knock in build quality.

Really? I've had my iPhone 5 in use since it arrived in November. Keep it in my pants pocket. No case. No issues for me.

[bobenhaus]

Originally Posted by bbplayer5

Like them or not, iPhone still has the best build quality of any phone ever made.

Blackberry 10 will be released very soon and that will send shivers down Apple Back.

[joneill55]

Originally Posted by bobenhaus

Blackberry 10 will be released very soon and that will send shivers down Apple Back.

LOL......Dude, put down the crackpipe and wake up. That ship sailed a long, long time ago never to return.

[bobenhaus]

Originally Posted by joneill55

LOL......Dude, put down the crackpipe and wake up. That ship sailed a long, long time ago never to return.

Apparently you havent read the news about carriers are selling out of preoders of the new Blackberry 10. I suggest you start to read before posting your info.

http://bgr.com/2013/01/10/blackberry...alysis-287451/

[iAco]

Originally Posted by bobenhaus

Apparently you havent read the news about carriers are selling out of preoders of the new Blackberry 10. I suggest you start to read before posting your info.

http://bgr.com/2013/01/10/blackberry...alysis-287451/

BB10 is a joke.

It's over for 'em.

Move on. There is better out there.