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Apple’s Schiller says cheap smartphones will ‘never be the future of Apple products’

Published Jan 10th, 2013 1:31PM EST
Apple Executive Schiller

Apple (AAPL) may sell a cheaper iPhone, but don’t expect it to sell for the bargin bin prices that we’ve heard about through rumors so far. In an interview with the Shanghai Evening News this week, Apple senior vice president of worldwide marketing Phil Schiller said that cheap smartphones will “never be the future of Apple products,” although he never explicitly ruled out selling a cheaper version of the iPhone. Apple’s reluctance to fight companies such as LG (066570) and Nokia (NOK) by flooding emerging markets with low-cost smartphones all boils down to one thing: Margins. As Schiller explains, Apple isn’t too concerned about its relatively low market share in emerging markets because “although Apple’s market share of smartphones is just about 20%, we own the 75% of the profit.”

Prior to joining BGR as News Editor, Brad Reed spent five years covering the wireless industry for Network World. His first smartphone was a BlackBerry but he has since become a loyal Android user.