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.

[bbplayer5]

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

[iAco]

No ****.

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

I'd be disgusted.

[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.

[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.

[jmcrutch]

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.

[apple-win]

Originally Posted by bbplayer5

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

You forgot the antenna problem

[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.

[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.

[Peace]

Originally Posted by iAco

No ****.

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

I'd be disgusted.

Why ? The back of the 3GS was plastic and quit popular.

[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.

[GermanyChris]

Originally Posted by iAco

No ****.

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

I'd be disgusted.

They've use plastic before and it was ooohh ahhh "Magical"

[Compile 'em all]

Me Gusta!

[Radio]

Apple should make a cheaper phone for other markets

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

[BergerFan]

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?

[bobenhaus]

Originally Posted by Radio

Apple should make a cheaper phone for other markets

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

Sudsides are starting to go by by for cheaper monthly bills for customers.

[iAco]

Originally Posted by Peace

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.

[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 iAco

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.

[iAco]

Originally Posted by bobenhaus

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

Wake up!

[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/

[AppleGuesser]

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]

Originally Posted by Radio

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.

[mdelvecchio]

Originally Posted by apple-win

You forgot the antenna problem

oh, the one that never bothered ANY of the iphone4 users i knew, and was demonstrable on any phone w/ similar deathgrips?

riiight.