Next-generation iPhones likely to focus on internal improvements.
Apple Answers Questions About Low-end iPhone and Mac Netbooks
Apple dismissed the possibility of a "low-end" iPhone which has discussed extensively. In some reports, the low-end iPhone has been one-in-the-same as the rumored iPhone Nano. In response (via AlleyInsider) to a question about iPhone pricing, however, Tim Cook revealed that a low-end iPhone seems unlikely:
We're not going to play in the low-end voice phone business. That's not who we are, that's not why we're here. Goal is not to lead unit sales, but to build the world's best phone.
Cook also continued to downplay Apple's interest in the "netbook" market:
We're watching that space, but from our [point of view] the products are based on hardware that's much less powerful, software technology that's not good, cramped displays. We don't think that people are going to be pleased with those type of products. It's a category we watch, we have some ideas here, but we think the products there now are inferior and won't provide the kind of experience people want.This wait-and-see attitude mirrors comments by Steve Jobs from the last financial results conference call in October.