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

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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56 Comments

1. Carlitos

Posts: 668; Member since: Oct 23, 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.

33. AnTuTu

Posts: 1612; Member since: Oct 14, 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.....!!!

48. MeoCao unregistered

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

49. Nathan_ingx

Posts: 4769; Member since: Mar 07, 2012

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

54. ZayZay

Posts: 571; Member since: Feb 26, 2011

At least it didn't say cheap.

2. jibraihimi

Posts: 806; Member since: Nov 29, 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.....

20. SleepingOz unregistered

And people will still buy it for the logo.

3. zaryab_hussain77

Posts: 104; Member since: Jun 30, 2011

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

4. thunderbolt

Posts: 76; Member since: Jan 10, 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

10. billybuttpounder

Posts: 105; Member since: Dec 28, 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.

39. rickywinataa

Posts: 262; Member since: Apr 05, 2012

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

29. someones4

Posts: 627; Member since: Sep 16, 2012

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

34. Ninetysix

Posts: 2964; Member since: Oct 08, 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.

35. someones4

Posts: 627; Member since: Sep 16, 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.

5. cornerofthemoon

Posts: 620; Member since: Apr 20, 2010

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

6. simplyj

Posts: 406; Member since: Dec 23, 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?

12. darkkjedii

Posts: 31039; Member since: Feb 05, 2011

U actually make a great point

25. TROLL

Posts: 4851; Member since: Apr 13, 2012

Right 8.GB is free the iPhone5.

30. someones4

Posts: 627; Member since: Sep 16, 2012

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

7. zuckerboy

Posts: 898; Member since: Dec 22, 2011

just make existing iphone no overpriced !!!

24. rainyday

Posts: 44; Member since: Sep 04, 2012

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

8. InspectorGadget80 unregistered

And apple tech iphone will always be in the pass.

9. billybuttpounder

Posts: 105; Member since: Dec 28, 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.

18. PhoneAddiction

Posts: 79; Member since: Nov 07, 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.

11. tedkord

Posts: 17356; Member since: Jun 17, 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.

13. darkkjedii

Posts: 31039; Member since: Feb 05, 2011

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

17. billybuttpounder

Posts: 105; Member since: Dec 28, 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.

37. darkkjedii

Posts: 31039; Member since: Feb 05, 2011

Please go away. Please???

42. TROLL

Posts: 4851; Member since: Apr 13, 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.

45. billybuttpounder

Posts: 105; Member since: Dec 28, 2012

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

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