Apple will not resort to cheaper products in its pursuit of expanding its market on the Asian soil, said Apple marketing chief, Phil Schiller when he was asked by a Chinese newspaper whether Apple is planning to release a cheaper version of their popular smartphone.
“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 told a Chinese newspaper in an interview.
“But that’s not the direction we want to be heading in our products”, he later clarified.
Analysts believe that Apple should develop a smartphone at a lower price to increase its sales in the Asian markets. The reason why Android is growing overtly popular in the Chinese market is due to the incredibly low price of the smartphones. Currently, Apple holds less than 10 percent stake in the Chinese market and slipped to sixth biggest smartphone manufacture in Chinese markets.
Though Apple can increase its market stake by developing a cheaper variant, Mr. Phil thinks that’s not the way company looks forward.
“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,” he said in the interview.
He also boasted the fact that though Apple commands only 20 percent of the stake in the smartphone segment, it bags more than 75 percent of the total profit.
Meanwhile, Apple CEO, Tim Cook, who is on visit to China, refused to make any comment on the cheaper iPhone rumors. He, however, told a Chinese government news agency that China would overtake US as Apple’s biggest market.
“China is currently our second largest market. I believe it will become our first. I believe strongly that it will,”
However, investors and market analysts feel that Apple would lose its ground if it doesn’t come up with a cheaper version of iPhone for the Asian markets. Previously, too, Apple’s reputation had taken a beating when there were reports suggesting that Apple stores in China were failing to attract potential buyers. Apple was then forced to release sales figures and clear the negativity.
Do you think a cheaper version of iPhone would help? Or, do you think such a desperate move would do harm to Apple’s hard-earned reputation?