Cheaper smartphones won’t represent Apple products to catch market share

Phil Schiller, senior vice president of worldwide marketing at Apple Inc., introduces the iPhone 5 during Apple Inc.'s iPhone media event in San Francisco (Credit: Reuters/Beck Diefenbach)

Phil Schiller, Marketing chief for Apple Inc., gave an interview to Chinese newspaper Shanghai Evening News in which he talked about the rumors of the cheaper iPhone, saying that this will ‘never be the future of Apple products’.

According to the interview, although Apple has just 20% of the smartphone market but it has a whoping 75% of the profit and the company will not take such step of developing cheaper smartphones just to expand market share.

“Originally, many in the Chinese market used feature phones (regular wireless phones). But now a few companies are starting to use cheap smartphones to take the place of feature phones,” Schiller was cited as saying in his first interview with a Chinese newspaper.

“But this is not a direction that we want to be heading in with our products,” he was quoted as saying in the Chinese-language report.

Very often Apple addressed the rumors itself but this time it happened.

Sometime back, rumors of the cheaper iPhone came in very authentic sources such as the Wall Street Journal and Bloomberg.