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12 Jan 2013

Apple: We'll never make a cheap iPhone

First Apple was going to make a cheaper iPhone, either to try to blunt the rapid rise of Android phones or to compete in international markets. Then it wasn't. Now after a new interpretation of comments from Phil Schiller, Apple’s senior VP of global marketing, maybe it could. Or not It's all so confusing.
So let’s settle this now: Apple will never make a cheap iPhone. Most certainly Apple itself will never use the word “cheap” in association with anything it makes, iPhone or otherwise. Or inexpensive, or value-priced, or anything of the sort. That has never been the Apple way, and given that it owns most of the profits in the industry with its current strategy even in the face of Google‘s Android onslaught, why it would change ?
More than that, though, it seems doubtful that Apple would sell an iPhone that anyone else would call cheap, either. Full-freight iPhone 5s bought without a contract start at $649 in the U.S., and even the cheapest iPhone 4 starts at $450 off-contract. It’s very difficult to see how Apple could profitably sell an iPhone of any kind that still deserves the name for a third to a half of those price points.

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