Apple Downplays Cheap iPhone Reports
By Eric Zeman
InformationWeek
Apple's senior VP of worldwide marketing Phil Schiller told the Shanghai Evening News in an interview that inexpensive iPhones would "never be the future of Apple products."
Schiller's statement appears to throw cold water on the sources cited in the Journal and Bloomberg reports, both of which provided details on how Apple would produce a low-cost iPhone. They suggested that Apple would ditch the aluminum frame used in the iPhone 5 and switch to polycarbonate, which might be cheaper to manufacture.
The timing of Schiller's comments could also be coincidence, and it's worth noting that the company generally chooses its messages carefully. Schiller is no nube, and has plenty of experience talking to the press. Also, cheap doesn't necessarily mean inexpensive or low-cost. Schiller could have been saying that Apple will never skimp on materials and manufacturing processes to produce cheap(er) goods.
Further, Apple is normally aggressive about maintaining its margins. A low-cost iPhone doesn't necessarily gel with Apple's long-term behavior and strategy regarding entry-level products. Apple admitted the iPad Mini squeezed its margins a bit, even with a price tag that is more than $100 above its closest competitors.
Last, it is important to remember that Apple is always researching and designing new products. Products that reach retail typically go through several generations of design before being finalized. It is possible that the sources cited by the Journal and Bloomberg were exposed to products that are still in the research and design phase that might still be years from reality.
As is always the case with Apple, it doesn't do something until it does it.
Attend Online Marketing Summit San Diego, Feb. 11-13, and gather the insights and strategies you need to make the right online marketing choices to deliver the most value for your business. OMS San Diego offers three days of inspiration, connections, and practical learning. Register by Jan. 11 with code WETW01 and save up to $600 on All Access or Conference passes.
Federal agencies must eliminate 800 data centers over the next five years. Find how they plan to do it in the new all-digital issue of InformationWeek Government. Download it now (registration required).
 |
To upload an avatar photo, first complete your Disqus profile. | View the list of supported HTML tags you can use to style comments. | Please read our commenting policy. |
Subscribe to RSSInformationWeek Reports
Cloud Implementer's Checklist
Once your agency has completed the business case for a private cloud, how do you actually move ahead with your data center transformation? Our report provides a practical set of steps to get you there, including a "to do" list that will be helpful to anyone on your IT team who's involved in the project. By the time you're done, your data center should be home to a more flexible, on-demand IT services.
Cloud Compliance in Government
Compute clouds created for government data centers must adhere to a range of specifications designed to support data and system security, privacy, and governance. FISMA, HIPAA, SOX, and SAS 70 are just some of the requirements that have to be taken into account as federal IT pros deploy a shared-services cloud model. In this report, we identify the key specs that need to be factored into any federal cloud architecture.
Government Cloud Platform Strategy
This report analyzes the key IT infrastructure considerations that must be taken into account for implementing cloud services in federal data centers: software/hardware environment, multi-tenancy, security, virtualization, and management tools. We also explain the key important role that APIs play in supporting hybrid scenarios that tap into public cloud services.
The Business Case for Government Clouds
This report assesses usage scenarios, barriers, and other variables that factor into the decision of whether and how to implement cloud computing in federal environments.