In an interview with the Shanghai Evening News, Apple Senior VP Phil Schiller responded to rumours of a cheaper iPhone, essentially stating that Apple will continue to focus on producing the best quality iPhone possible and will not cut corners on its iPhone design simply to produce an inexpensive smartphone for the mass market.
Speaking regarding Apple’s products in China, Schiller noted that the Chinese market has already evolved from non-smartphones to cheap smartphones, but that despite their popularity, this will not be the future of Apple’s products. Schiller emphasized that Apple considers using only the “best technology available” in every product that it creates, and that Apple continues to make the majority of profit despite only owning a relatively small market share of smartphones.
Update: Reuters has issued a brief statement that it has withdrawn the prior story due to the Shanghai Evening News report being “subsequently updated with substantial changes to its content.” Notably, Reuters has indicated that no replacement story will be issued. There is some confusion as to the reasoning for this, as the Shanghai Evening News reports does not appear to have substantially changed since its initial publication by English media, however there has been some speculation that Schiller’s comments may have been misinterpreted or mistranslated.