Apple Exec Casts Doubt On Low-Priced iPhone

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Over the past couple days, we’ve brought you a number of reports on rumors that Apple will release a new lower-priced version iPhone sometime towards the end of the year. While that sentiment has been backed-up by a number of sources, Apple’s Phil Schiller seems to think there’s no weight to the rumors, and insists that low-priced gear isn’t the direction Apple’s headed.

Speaking with the Shanghai Evening News, the Senior VP addressed a question specifically about all these rumors we’ve heard, and while he acknowledges that budget hardware is a road plenty of other smartphone manufacturers have headed down, he doesn’t see a need for Apple to do the same.

This may be due to Apple’s spectacular profit margin, which lets it get by with only controlling a fraction of the global smartphone market (about one-fifth) yet bringing-in the lion’s share of overall smartphone profits. Were Apple to introduce a lower-priced iPhone, it might see its share go up a bit, but without the corresponding rise in profits; for Apple, the venture just might not be worth it.

Source: Shanghai Evening News (Google Translate)
Via: BGR

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About The Author
Stephen Schenck
Stephen has been writing about electronics since 2008, which only serves to frustrate him that he waited so long to combine his love of gadgets and his degree in writing. In his spare time, he collects console and arcade game hardware, is a motorcycle enthusiast, and enjoys trapping blue crabs. Stephen's first mobile device was a 624 MHz Dell Axim X30, which he's convinced is still a viable platform. Stephen longs for a market where phones are sold independently of service, and bandwidth is cheap and plentiful; he's not holding his breath. In the meantime, he devours smartphone news and tries to sort out the juicy bitsRead more about Stephen Schenck!