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Rumor: Apple planning low-cost iPhone with larger display for late 2013

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Schiller: Cheap iPhones Will "Never Be the Future of Apple" - The Mac Observer

FTA - Tim Schiller
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.

At first, non-smartphones were popular in the Chinese market, now cheap smartphones are more popular and non-smartphones are out. 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.

The last line is probably most telling. Most stats I see tout how everyone has more market share than Apple - but market share is just one aspect. With 75% of the profits - why would you go with a low profit margin device? Unless Schiller is trying to throw people off - he never says they aren't going to make a cheap smartphone - he just says it isn't the future of Apple.

Some market analysis/somewhat contrarian view from WSJ Marketwatch
Apple sends mixed message on 'cheap' iPhone - The Tell - MarketWatch
 

chscag

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Apple has never built a "cheap" anything, at least as far as I can remember. Even when Steve Jobs wasn't around that was true. And when he returned the first thing he did was get rid of the Apple clones.....
 

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