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

[RobertMartens]

Originally Posted by Digital Skunk

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

Hey, you leave Final Cut out of this!

[Analog Kid]

Originally Posted by SlCKB0Y

Maybe Phil is dizzy from all that spin. A much more accurate way to present this information would be to say "Apple Wouldn't Sacrifice Profit for Market Share in a Cheaper iPhone".

That's how I read it-- but I don't take that as spin, just stating the strategy.

[Analog Kid]

Originally Posted by FireFish

On that note, I'm at that tipping point where I'm about to dump the rest of my Apple shares, only because I see their downfall playing out in slow motion over the next 18 months. Steve would know what to do if he was around. No one else has his passion, which is what Apple's valuation was built on to begin with.

Apple's P/E: 11.86
Microsoft: 14.30
Google: 23.24

There's a million ways to value a company, but Apple isn't really valued that high relative to earnings. I think that 70% of profits number is the reason they're valued where they are.

Without a doubt, Apple excels at breaking-out, but even under Steve there were issues with sustaining success in established markets.

It'll be interesting to see what happens from here-- smartphone innovation has largely run its course, I think. Slightly larger screens, somewhat different wireless options, fashion colors-- there's not a lot of new hardware capability waiting out there. We'll see a few more innovations in the software platform, but it's pretty much peaked as well.

Here's where Tim needs to act like COO again, and smoothly change gears-- iOS devices need to remain profitable with declining differentiation, and Apple needs to find another new market to break open.

If that new market is web services-- that's when I dump my shares...

[Technarchy]

Originally Posted by Spidder

1. Build high quality products
2. Let the others build crappy junk
3. Profit

Agreed.

Let the Korean and Chinese phone makers be kings of the highest pile of junk.

There is a reason Apple products raise the crime index and NYC and get million dollar heists in Paris...

It's not because they go cheap either. Furthermore Apple could never win going cheap. They will never sink as low as Google and make abominations like the Nexus 7. Better not to go down that road at all.

[ChrisTX]

Originally Posted by Benjamins

fun fact: Apple already sell 3 different iPhones at different price point and sizes.

There's a huge difference though between a cheap iPhone, and a cost effective one. A lot of people here don't understand that.

[SAD*FACED*CLOWN]

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/

Well as I recall the last "new touchscreen blackberry" sold out too...but looking at things now...it was hardly what anyone would call a success.

[AppleScruff1]

Originally Posted by imacintosh.0

I just did and did not find even one post where someone said the retina screen was unnecessary. In fact, most were saying the mini screen was definitely not as good as retina but it's fine. So no, "many" ppl are not acting as if retina is useless or unnecessary now that the mini is out.

I'd still like to give you the benefit of the doubt so if you'd like to point out the many people who said this, I'd love too see.

Otherwise it's more of that "Apple users are brainwashed" nonsense

You answered your own question. It's not as good as retina, it's good enough. And that's what I said in my original post. So you agree with me.

[Dustman]

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.

iPhone 2G -> iPhone 3G

[BiggAW]

Originally Posted by mrsir2009

I don’t think LTE will be suitable - I mean, LTE is only just starting to catch on in the first world. You’re not going to be seeing LTE in the majority of India and Africa anytime soon

Then wouldn't it just be a 4 or 4S???

[mrsir2009]

Originally Posted by BiggAW

Then wouldn't it just be a 4 or 4S???

It would probably be similar to the 4, 4S or even 3GS in terms of features, yeah. But it would be a different, cheaper, design and would cost less. I reckon it’ll be something like this:

*8GB and 16GB memory options.
*5MP Camera.
*3.5” screen, with same quality as 4th gen iPod Touch.
*3G and WiFi connectivity.
*Plastic casing.

----------

Originally Posted by Technarchy

Agreed.

Let the Korean and Chinese phone makers be kings of the highest pile of junk.

There is a reason Apple products raise the crime index and NYC and get million dollar heists in Paris...

It's not because they go cheap either. Furthermore Apple could never win going cheap. They will never sink as low as Google and make abominations like the Nexus 7. Better not to go down that road at all.

What do you mean “abominations like the Nexus 7”. Some of my friends have tried it, and along with the reviews it paints the picture of a very good product, at an affordable price

[AidenShaw]

Originally Posted by Analog Kid

If that new market is web services-- that's when I dump my shares...

Take that, Eddy Cue!

Seriously though, Apple's execution has been rather weak in that area.

Although they did burn down many acres of trees to put up solar panels.

[nia820]

Originally Posted by bbplayer5

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

Wrong.

Nokia 3310 probably has the best build quality. You could drop that phone a 1000 times and it would still work like new.

All smartphones today (including iphone). Are not as durable as dumb phones were.

And even among the smartphone pool iphone is not the best. Iphone 4 and 4s screen would shatter if you dropped it from 1 inch. Iphone 5 back is a scratch magnet.

Iphone has the best design out there. But the quality has gone down

[imacintosh.0]

Originally Posted by AppleScruff1

You answered your own question. It's not as good as retina, it's good enough. And that's what I said in my original post. So you agree with me.

Wrong. What you said was many here said retina was unnecessary and that the mini screen was good enough. You're saying that's the same thing as saying "it's not as good, but good enough"?

The whole point of my post to you was the fact that many people did not say it was unnecessary.

[sazivad]

The cost of the phone is nothing compared to the monthly data plan.

It's why I still have an iPod + dumbphone instead of an iPhone.

[Arman]

Doesn't Apple already penetrate the cheap market by continuing to sell iPhone 4S?

[terraphantm]

Originally Posted by mdelvecchio

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

riiight.

Unlike other phones, you didn't need to squeeze the crap out of the 4 to cause the problem to surface. You just needed to lightly touch the left band. Made holding the phone with your left hand near impossible. And even with my right hand, my pinky always ended up there.

[gotluck]

Originally Posted by Technarchy

They will never sink as low as Google and make abominations like the Nexus 7.

Seriously? What's wrong with the Nexus 7? Especially for the price... it even has gps with offline cached google maps.

Not saying it is better than the mini but it definitely has value as a product.

[AppleScruff1]

Originally Posted by imacintosh.0

Wrong. What you said was many here said retina was unnecessary and that the mini screen was good enough. You're saying that's the same thing as saying "it's not as good, but good enough"?

The whole point of my post to you was the fact that many people did not say it was unnecessary.

Whatever Voonyx.

[flameproof]

Originally Posted by bbplayer5

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

Not since all the scratched iPhone 5 out there.

[iAco]

I think deep in Apple's legal cacophony there's a statement that reads: WE DON'T MAKE CHEAP ****!

[D-a-a-n]

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.

iPhone 1 -> iPhone 3G?

[SlCKB0Y]

Originally Posted by Analog Kid

That's how I read it-- but I don't take that as spin, just stating the strategy.

It kinda is.... although the way he stated it is customer focused and the alternative way is more shareholder/company focused.

His way is implying that a cheaper iPhone could not be made unless quality was compromised, which isn't strictly true.

----------

Originally Posted by bbplayer5

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

Unless your definition of build quality is vastly different from mine...what utter rubbish. iPhone build quality peaked with the 4/4S (and was top notch) but even then was not the best ever made.

iPhone 5 though? You must be kidding...

----------

Originally Posted by JHankwitz

Why do people keep bringing up this bogus antenna problem? Every phone on the market loses some reception when you hold it in your hand.

Yea but all those other phones did not have external antennas which you could detune by bridging them with your hands....it wasn't just signal attenuation caused by passing through the hand.

Still, you're right, it was vastly blown out of proportion.

[swagi]

Originally Posted by KnightWRX

That really has nothing to do with it. Desktops are a mature segment showing signs of decline, for all players, not just Apple. Even if Apple had fully concentrated on only desktops, they can't change industry wide trends here. The market is mature, technology and innovation comes in smaller increments and Microsoft has a foothold due to their monopoly.

No, the reason Apple came to depend so much on the iPhone and the iPad for their revenue is simply due to having a hot product in an emerging segment with no vendor encroachement.

They entered the smartphone arena as it was morphing from a business service to the consumer space. They did so with a hot ticket item. They've been riding the segment's growth since then. Same for the iPad, where they basically reinvented the segment and have been driving the growth there.

Actually you are wrong. They entered the smartphone market for just one sole reason: trying to lock as many customers in as possible and forcing a monopoly on media upon us.

Just read between the lines. Sad fact (and that is what investors slowly realize - and that is why the bubble is bursting): Apple miserably failed to translate iOS-sales into iTunes-store revenue.

The iPad wasn't about introducing a tablet and "the post PC era" - the iPad was about locking you to the iBookstore and digital newspapers sold there. That's why Steve solely promoted reading on it. That's why the first one didn't have a front-facing camera.

Apple tried to transform from a hardware-based company to a license-based company. And they failed. They learned to promote mobile hardware, as people are willing to buy new on a two-year basis (while on the PC side of things people have longer buying cycles). And they really tried to force Apple-based services on you (remember PING?).

And that's why they keep working on the TV-project - to lock you into Apple-branded content. Think about it.

[toughboy]

Originally Posted by bobenhaus

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

Obv troll is obv.

[SlCKB0Y]

Originally Posted by gotluck

Seriously? What's wrong with the Nexus 7? Especially for the price...

Because it's not

Clearly you are not familiar with the user you are quoting.