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In an interview with China's Shanghai Evening News, Senior Vice President of Apple, Phil Schiller said, “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 goes on to say, “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.”
Rumour mills have been hard at work on the Internet suggesting that Apple is working on a cheaper iPhone that will have a larger screen than the iPhone 5 and will see the light of day in 2013.
Even if Apple decides to launch a budget device, it is unlikely that the company would like to be associated with the word cheap. Apple has a history of making its past generation devices available at a more affordable price when the next iteration of that particular product is released. The best example of this is that the iPad 2 16GB Wi-Fi is still available in the market for those that want a more affordable Apple tablet (Rs. 24,500) where as the current generation iPad is available at a starting price of Rs. 32,900.
We can’t completely discount the fact that Apple will never venture into the low cost smartphone market. Once upon a time, Steve Jobs said that Apple would never make a 7-inch tablet and today we have the iPad mini. Will the company succumb to market and peer pressure with a “budget” iPhone?
Source: The Next Web