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Phil Schiller says inexpensive iPhone will "never be the future of Apple"

Posted: , by Michael H.

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Phil Schiller says inexpensive iPhone will
There have been a lot of rumors recently about the possibility of Apple releasing an inexpensive iPhone for emerging markets. First, we saw Apple fanalyst Gene Munster repeat the prediction a few times, hoping someone would eventually listen. Then, actually reputable sources in DigiTimes, the Wall Street Journal, and Bloomberg all came out saying that a less expensive iPhone was on the way. Now, Apple's Senior Vice President of Worldwide Marketing, Phil Schiller is saying that such a phone "will never be the future of Apple products".

The quote came during an official interview with the Shanghai Evening News, while Schiller was specifically talking about the smartphone market in China. Schiller was talking about how cheap smartphones are popular in China right now when he said, "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." This sounds almost exactly like the reason why we've always been hesitant to believe the inexpensive iPhone rumors: it goes against Apple's profit aims. 

The rumor had been that Apple was planning to make a new iPhone with a polycarbonate exterior and "recycled" parts for the inside. On one hand, this makes sense with Tim Cook's history in supply chain management. But, according to Schiller, "every product that Apple creates, we consider using only the best technology available." 

You may notice that none of these quotes explicitly deny the rumor of an inexpensive iPhone. The argument could be made that Schiller is saying "cheap smartphones" will never supersede high-end devices as the future of Apple. Similarly, "using only the best technology available" has already been adjusted with the caveat "for the price point we're aiming at" with the iPad mini using older technology to hit a lower cost. 

So, will still don't have a clear denial of an inexpensive iPhone in the works, and we don't have clear proof either. All we have is an Apple exec saying that a certain product "will never be the future of Apple". You know, just like Steve Jobs said that the company would never make a 7" tablet.

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posted on 10 Jan 2013, 13:16 18

1. Carlitos (Posts: 265; Member since: 23 Oct 2011)


It just makes no sense to make an iphone Mini. The iphone screen isn't that big to begin with. But of course people freak out and think its gonna be the s**t mmmhmmm(CNBC!) Mmmhmm.
Plus that's why the iphone 4s/4/3gs are still being made.

posted on 10 Jan 2013, 15:07 14

33. AnTuTu (Posts: 598; Member since: 14 Oct 2012)


Apple ----> It was a smartphone in 2007, 2008 and 2009 and after that it is just trying to catch - up with other smartphones in the market.

It is just a matter of time.....!!!

posted on 10 Jan 2013, 21:46 9

48. MeoCao (unregistered)


Good point, and now iPhone is a dumbphone, officially.

posted on 10 Jan 2013, 22:16 8

49. Nathan_ingx (Posts: 2964; Member since: 07 Mar 2012)


You know, it's funny how the word 'inexpensive' has been used instead of the usual word 'affordable'.

posted on 11 Jan 2013, 12:04

54. ZayZay (Posts: 548; Member since: 26 Feb 2011)


At least it didn't say cheap.

posted on 10 Jan 2013, 13:19 13

2. jibraihimi (Posts: 539; Member since: 29 Nov 2011)


Or maybe he wants to say that 'cheap iphone's will not be so cheap eventually.......... That means, cheap iPhone will have internals of iphone 3G, but their price will be on par with HTC One S, or Motorola Razr M, or Samsung Galaxy S3 mini or S2 or Lumia 820.....

posted on 10 Jan 2013, 14:12 19

20. SleepingOz (Posts: 2468; Member since: 22 Oct 2011)


And people will still buy it for the logo.

posted on 10 Jan 2013, 13:21

3. zaryab_hussain77 (Posts: 102; Member since: 30 Jun 2011)


He said it now..
I knew it from the day first !!!

posted on 10 Jan 2013, 13:23 15

4. thunderbolt (Posts: 76; Member since: 10 Jan 2013)


All those talk of cheap phones from Apple it means was nothing more than "TROLLING" and merely put in place to hijack CES news

posted on 10 Jan 2013, 13:42 5

10. billybuttpounder (banned) (Posts: 105; Member since: 28 Dec 2012)


Exactly. since they literally had NOTHING to show or talk about. Hey, I'll be an analyst (Ihave the qualifications to make educated guesses and be right maybe half the time too!) and predict apples stock will slide another 20% in the next couple months as Android, Windows, and even Blackberry continue to outperform and outclass the iphone in every single way.

posted on 10 Jan 2013, 16:49 2

39. rickywinataa (Posts: 262; Member since: 05 Apr 2012)


Imo people are waiting for the next idevice from Apple, it has been 3 years since the first iPad launched

posted on 10 Jan 2013, 14:58 5

29. someones4 (Posts: 613; Member since: 16 Sep 2012)


True. and people who believe that are quite naive... Apple will only cram mediocre hardware to maximise profit.

posted on 10 Jan 2013, 15:41

34. Ninetysix (Posts: 1070; Member since: 08 Oct 2012)


someones4: "Apple will only cram mediocre hardware to maximise profit."

Please let me know what your views are about the S3 Mini and SII Plus phones from Samsung.

posted on 10 Jan 2013, 16:08 7

35. someones4 (Posts: 613; Member since: 16 Sep 2012)


S2 plus is really lame honestly. No idea why they did that. But it's still more or less on par with the iPhone, specs-wise.

posted on 10 Jan 2013, 13:24 5

5. cornerofthemoon (Posts: 485; Member since: 20 Apr 2010)


In other words, Apple is about to release an inexpensive iPhone.

posted on 10 Jan 2013, 13:31 2

6. simplyj (Posts: 404; Member since: 23 Dec 2009)


Apple should raise storage on the iPhone

$99 for 16gb
$199 for 32gb
$299 for 64gb
$399 for 128gb

there's your low end iPhone right there, 8gb is plain stupid

hahaha, who am I kidding?

posted on 10 Jan 2013, 13:51

12. darkkjedii (Posts: 9262; Member since: 05 Feb 2011)


U actually make a great point

posted on 10 Jan 2013, 14:39 2

25. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)


Right 8.GB is free the iPhone5.

posted on 10 Jan 2013, 14:59 3

30. someones4 (Posts: 613; Member since: 16 Sep 2012)


Don't understand your thumb downs...That's sarcasm right?

posted on 10 Jan 2013, 13:36 6

7. zuckerboy (Posts: 712; Member since: 22 Dec 2011)


just make existing iphone no overpriced !!!

posted on 10 Jan 2013, 14:36 6

24. rainyday (Posts: 44; Member since: 04 Sep 2012)


exactly, what he means is "our phones will always be overprices, because we are very very greedy"

posted on 10 Jan 2013, 13:38 7

8. InspectorGadget80 (Posts: 5634; Member since: 26 Mar 2011)


And apple tech iphone will always be in the pass.

posted on 10 Jan 2013, 13:39 5

9. billybuttpounder (banned) (Posts: 105; Member since: 28 Dec 2012)


Just like I and everyone else has been saying. "Analyst" is a joke profession, sure wish I could get paid the amount of money they do to make guesses and be right half the time.
apple will NEVER release any product (outside of the LOLshuffle) for under $100. We will NEVER see an iphone for less than $400 unactivated, and that's OK with me since apple will never get a dime from me.

posted on 10 Jan 2013, 14:07 3

18. PhoneAddiction (Posts: 77; Member since: 07 Nov 2012)


So true. The analyst profession in sports is a joke too. These two seem to go hand in hand. Give a guess, and if they're right, they're somehow reliable. If they're wrong, no one talks about it.

posted on 10 Jan 2013, 13:44 7

11. tedkord (Posts: 3908; Member since: 17 Jun 2009)


When he says cheap, he's talking price only. Apple will have no problem making phone out of last years tech and selling it for a 400% markup. Its kind of their stock in trade.

posted on 10 Jan 2013, 13:54 1

13. darkkjedii (Posts: 9262; Member since: 05 Feb 2011)


Apple should make a phablet but beating samsung is a tall order

posted on 10 Jan 2013, 14:06 9

17. billybuttpounder (banned) (Posts: 105; Member since: 28 Dec 2012)


But your messiah steve jobs told everyone that 3.5" is the biggest anyone would ever need? Gosh, I would be very confused if I was an iDrone because steve always told you guys what to think and what you want.

posted on 10 Jan 2013, 16:25

37. darkkjedii (Posts: 9262; Member since: 05 Feb 2011)


Please go away. Please???

posted on 10 Jan 2013, 17:09 2

42. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)


He's back..for good ran't you billybutpounder? ... where's chaoticrazor and PAPINYC....

No he's here to Troll Apple....And to stay.

posted on 10 Jan 2013, 18:04 2

45. billybuttpounder (banned) (Posts: 105; Member since: 28 Dec 2012)


Yup. In the words of darkjedi- "make me".

posted on 10 Jan 2013, 20:17

47. someones4 (Posts: 613; Member since: 16 Sep 2012)


If they do, they'll be slapping themselves in the face. Since they so vehemently defended their stance on small screens, there'll be little choice but to put on a tough face and carry on with their style.

posted on 10 Jan 2013, 13:55 1

14. biophone (Posts: 1884; Member since: 15 Jun 2011)


Apple's strategy of selling last years phone for a 100 dollar discount is fine. On contract you can get a free iPhone 4. Thats pretty good. As far as outright cheapness I could see an iphone 4 one day being that cheap phone. They would still sell the newest iphone for a ton and get tons of proft.

The 7 inch tablet thing was different because the reason jobs said a 7 inch tablet weren't good is because they used phone apps. The ipad mini uses tablet apps. I can't see apple making a inexpensive iPhone as in building a new iphone that was made to be cheap but I could see them selling old iphones for cheap.

posted on 10 Jan 2013, 14:09 3

19. billybuttpounder (banned) (Posts: 105; Member since: 28 Dec 2012)


"On contract you can get a free iPhone 4. Thats pretty good"

LOL, no. a 2 year old 3G phone with a single core processor is "good" to you?
One could do SOOOO much better, Incredible 4G, Galaxy Exhilerate, BB Torch, Lumia 900, Galaxy S 2 all dominate the iphone 4 as a free phone.

posted on 10 Jan 2013, 14:39

26. thunderbolt (Posts: 76; Member since: 10 Jan 2013)


Ipad 2 price dropped in India by 10K 2 days back on few online retail stores now that's a cheap tablet ... isn't it ?

posted on 10 Jan 2013, 15:01 2

31. biophone (Posts: 1884; Member since: 15 Jun 2011)


The type of person who is likely to buy a free phone isn't a power user. The iphone 4 is a great phone for alot of people. I have an iphone 4 and for a single core phone its fast enough as it does every task I ask of it no problem. Alot of people also have wi-fi everywhere like I do living on a college campus so 3g isn't a problem. Also the power drain 4g is for some phones some people would prefer 3g. Heck I'm not saying there aren't other good options but different people have varying needs. The fact apple has a cheap phone available is the point and the cheap phone they are selling is actually pretty darn good.

posted on 10 Jan 2013, 17:03 3

40. billybuttpounder (banned) (Posts: 105; Member since: 28 Dec 2012)


I agree with everything you said, +1. However, I'm the kind of person that wants the most for my money even if we're talking free product. And I feel my point stands, that there are MUCH better "free" options on contract than an i4. But yeah, I agree that people that want free phones typically don't care much about specs.
A good point.

posted on 10 Jan 2013, 18:56

46. biophone (Posts: 1884; Member since: 15 Jun 2011)


I agree there are better options if you want a phone with the best specs or most customizability. However if you aren't the iphone is a good option.

posted on 11 Jan 2013, 12:09

55. ZayZay (Posts: 548; Member since: 26 Feb 2011)


Even if I wasn't a phone lover, if someone told me that the i4 was 2 years old, it would turn me away. Didn't anyone notice that when iOS 6.0 came out, the 4 got a little bit slower? Or am I the only one handling customers phones and thinking "Dang, this is slow why would anyone want this?"

posted on 10 Jan 2013, 13:58 1

15. HTCOE (Posts: 314; Member since: 20 Nov 2011)


i think they're just going to sell refurbished phones as new phones

posted on 10 Jan 2013, 14:04 1

16. Feanor (Posts: 273; Member since: 20 Jun 2012)


I don't think that Apple will be able to command this 75% profit share for ever. I think this will soon start shrinking and then they will be forced to think of alternatives, most likely a smartphone under the iPhone. Which I hope because the main reason why I dislike the iPhone is that it makes people look so uniform. If they had a wider line-up, then I wouldn't groan every time I saw someone holding an iPhone... Imagine watching 20-30% of the population going out with the same T-shirt...

posted on 10 Jan 2013, 14:36

23. thunderbolt (Posts: 76; Member since: 10 Jan 2013)


Yes all robocops walk talk and function in same as as they were programmed to function ... isn't robocop more aristrocratic than the other word ... lol sounds so "cool" man ...

posted on 10 Jan 2013, 14:12 6

21. Aeires (unregistered)


From the same guy that said Apple was never focused on the money.

posted on 10 Jan 2013, 14:40 1

27. thunderbolt (Posts: 76; Member since: 10 Jan 2013)


Aristocratic hypocrits.

posted on 10 Jan 2013, 14:28 5

22. ilia1986 (unregistered)


"every product that Apple creates, we consider using only the best technology available"

Riiight.

Ever heard of this incredible technology called "Bluetooth file transfer protocol"?

posted on 10 Jan 2013, 14:41 1

28. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)


They don't believe in that cause they don't want to pay patent fees to whom it belongs to or is it Frand?

posted on 10 Jan 2013, 15:06

32. biophone (Posts: 1884; Member since: 15 Jun 2011)


I don't think thats what they meant. I think its more along the lines of the best screens, processors, radios, and so on. If they made a cheap iphone it wouldn't have these things. If they just sell old iPhones though for people who aren't power users they will have the best technology for previous years. Which alot of people are ok with. To put it another way he was talking about the necessary parts of the phone such as processors should be the best available. He is not saying they include every feature possible.

posted on 10 Jan 2013, 18:02

44. LionStone (Posts: 434; Member since: 10 Dec 2010)


"Consider", being the key word there... ahem... :-)

posted on 10 Jan 2013, 16:19 3

36. drnggaj33 (Posts: 127; Member since: 29 Feb 2012)


apple luvs taking money from u guys ...customers talk about att and vzw ...apple does it all the time and ppl just buy it smh

posted on 10 Jan 2013, 16:28

38. imkyle (Posts: 947; Member since: 18 Nov 2010)


Just like a 7 inch iPad would never happen or a bigger screen iPhone would never exhist. If the market wants a cheaper iPhone who are you to deny them that?

posted on 10 Jan 2013, 17:08 1

41. ray77 (Posts: 121; Member since: 17 Nov 2012)


who care about apple

posted on 10 Jan 2013, 17:15 2

43. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)


No one...

posted on 11 Jan 2013, 00:06

50. shnibz (Posts: 153; Member since: 18 Sep 2011)


Inexpensive iPhone would sell well.

posted on 11 Jan 2013, 00:07

51. shnibz (Posts: 153; Member since: 18 Sep 2011)


Razr M would still be a better deal for the $ though :P

posted on 11 Jan 2013, 00:33

52. kadeep (Posts: 2; Member since: 13 Nov 2012)


He said that even apple produces junk-but-expensive phone , still have plenty of i.... ready to pay for it

posted on 11 Jan 2013, 08:22

53. jsdechavez (Posts: 676; Member since: 20 Jul 2012)


Mr Schiller doesn't want to hurt the running sales of the iPhone 5, does he? If he confirms cheap on the works, people will wait. iPhone not for me anyway. Xperia and Lumia Pureview for me.

posted on 12 Jan 2013, 01:08

56. SEFsung (Posts: 15; Member since: 28 Dec 2012)


Apple is no longer a smartphone, it's more of an accessory nowadays.

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