Apple’s guy in charge of marketing, Phil Schiller, said in an interview recently that Apple has no plans of making a cheap iPhone:
“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.”
Phil Schillers statement comes a few days after Wall Street Journal wrote that Apple will try to increase their market share by releasing a cheap version of the iPhone.
Phil goes on to say in the interview:
“[...] 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.”
But the Devil is in the details, and so it’s likely that Phil has just very carefully selected his words. Apple may not release “a cheap iPhone”, but maybe they will release a “cheaper version than the existing iPhone”. Just like when Steve Jobs said Apple would not make a 7″ tablet because that market is stillborn, well, few years later, they almost did (iPad Mini is 7.9″, but close enough).