New in OS X: Get MacRumors Push Notifications on your Mac

Resubscribe Now Close

Phil Schiller Says Apple Wouldn't Sacrifice Quality for Market Share in a Cheaper iPhone

Apple marketing chief Phil Schiller is accompanying CEO Tim Cook on his trip to China, and the Shanghai Evening News has published an interview [Google translation] with Schiller in which he addresses recent rumors of a cheaper iPhone. The report was first brought to our attention by Macerkopf.de, but The Next Web has since obtained a better translation and confirmed with Apple that the report did indeed stem from an official interview with Schiller.
Interviewer Huang Yinlong spoke to Schiller about Apple’s products in China who said that “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,” Schiller added later. “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.”

Schiller's comments of course do not specifically rule out the possibility of Apple launching a lower-cost iPhone, but he does make clear that Apple will not sacrifice quality in order to garner a greater unit share of the market. The philosophy should not be a surprise to anyone familiar with Apple, but it does provide reassurance that Apple will fill a very specific niche if it does pursue a lower-cost iPhone, opting to pursue its own course rather than being letting competitors define where it will play in the market.

A similar approach was revealed with the iPad mini late last year, which debuted at a base price of $329, considerably higher than numerous competing products in the range of $199 or lower, and even above the $249-299 expectations of many observers. But for Apple that $329 opens up an entirely new segment of the market below the $499 full-size iPad and even the $399 iPad 2.

It in its report earlier this week echoing The Wall Street Journal's claims of a cheaper iPhone, Bloomberg claimed that the cheaper iPhone could sell for $99 or $149 (presumably on a two-year contract), which would be just $50-$100 below the iPhone 5 and in line with the iPhone 4S currently offered alongside the iPhone 5. But even a $50-$100 discount on Apple's latest-generation hardware could attract new customers and especially bring down upfront costs in countries where carrier subsidies are not offered.

Related roundup: iPhone 6

Top Rated Comments

(View all)

24 months ago
Like them or not, iPhone still has the best build quality of any phone ever made.
Rating: 48 Votes
24 months ago

Blackberry 10 will be released very soon and that will send shivers down Apple Back.


LOL......Dude, put down the crackpipe and wake up. That ship sailed a long, long time ago never to return.
Rating: 27 Votes
24 months ago
In other words, there will be a lower cost iPhone, but the quality will "not be sacrificed". Just an attempt to throw people off of the rumors, IMO.
Rating: 23 Votes
24 months ago

No ****.

You'd have a severe mental illness if you think Apple will go from metal to plastic.

I'd be disgusted.


They've use plastic before and it was ooohh ahhh "Magical"
Rating: 23 Votes
24 months ago

No ****.

You'd have a severe mental illness if you think Apple will go from metal to plastic.

I'd be disgusted.


Why ? The back of the 3GS was plastic and quit popular.
Rating: 18 Votes
24 months ago

Like them or not, iPhone still has the best build quality of any phone ever made.


You forgot the antenna problem :apple:
Rating: 17 Votes
24 months ago

Not really, I include durablity and quality control in build quality and the iphone 5 scuffing issues clearly is a knock in build quality.

That has nothing to do with build quality.

Apple's build quality is superb.

I bet you it's better than 99% of the apliances/electronics you run into your daily life.

That's normal ware and tare. I wish it would be made of a much more durable material, but if Apple plans on releasing a new phone every year, then it doesn't make economic sense for them.

Either way, phones come and go. If you don't like the scuffing, get a gigantic condom for it.

I don't like condoms.
Rating: 15 Votes
24 months ago

The first iMac was plastic.

Stop looking backwards.

Plastic feels cheap. When you buy a Apple branded object, it should NOT feel cheap. It also goes against everything Apple stands for.

Plastic iPhones are like knock off LV bags. No integrity. And it's not even a natural material. Completely unrecycable. The idea is completely toxic. Stop dreaming people.


Apple has no choice but to go cheap if they want to be able to compete in the future. Deal with it.
Rating: 12 Votes
24 months ago

Blackberry 10 will be released very soon and that will send shivers down Apple Back.


^ lol
Rating: 12 Votes
24 months ago

You forgot the antenna problem :apple:


oh, the one that never bothered ANY of the iphone4 users i knew, and was demonstrable on any phone w/ similar deathgrips?

riiight.
Rating: 12 Votes

[ Read All Comments ]