If you read our blog this week you will know that a report surfaced suggesting that Apple could be working on a low cost iPhone. Well, in a rare one to one interview, Apple Marketing SVP Phil Schiller stated that this report was not true. In fact, he flat out denied it.
The iPhone's market share peaked in the fourth quarter of 2011 and in the first quarter of last year when it stood at 24%. It then slipped back to just 14.3%. Phil Schiller addressed this concern in his interview and justified Apple's current position in the market by pointing at low cost devices. He also went on to state that Apple does not intent to get into this market.
Creating a low cost and lower end iPhone model would be a huge change for Apple who as everyone knows, has always valued user experience and quality over the market share. This approach has also been taken with the Mac product line which does not feature low end products that have been made using cheaper materials. While they may have a lower market share overall, Apple argues that this approach ensures that the quality of all its products is high enough for the average consumer.
Schiller went on and also criticized the approach that is being followed by some of their competitors who expand their product line too quickly. He argued that a small product line ensures maximum software and accessory compatibility by reducing the effort on the part of developers and manufacturers to ensure that their products work on all devices.
For those who were hoping for a low cost and lower end iPhone, Apple did satisfy this wish by making previous models of the iPhone available for a lower price. At the moment, both the iPhone 4 and the iPhone 4S are still for sale from Apple's own stores as well as third party retailers. So for now, there is no truth in the rumor that Apple will be releasing a lower end and lower cost iPhone model this year.
