Another day, another Apple rumour by a so-called analyst. Why can’t any of these people actually analyze the company and industry they are reporting on?
Even more disturbing is how many “real” news outlets pick up the tripe and print it as a story so that it is repeated by everyone from the local TV news and the bag boy at your supermarket.
The latest idiocy is the idea that Apple has to produce a low cost iPhone or risk losing out to other smartphone makers. This is said even though there is a free iPhone available on contract if you buy an earlier model. I think what the analysts mean is a cheap unlocked iPhone for emerging markets, but they are ignoring the fact the iPhone is selling faster than they can make them in China and the rest of the world.
News flash to the hit whoring so-called analysts – Apple sells premium products at premium prices to premium customers! Stick that on a post it note beside your computer before you post another ridiculous rumour or the next stupid Apple story. Apple will never make a cheap iPhone. Note that I said cheap, not inexpensive, they may one day make an inexpensive iPhone once they figure out how to make enough profit on the less expensive device.
Apple is famously silent on social media and rarely comments on rumours but Phil Schiller, the SVP of worldwide marketing said in an interview today that all of the cheap iPhone rumours are false. Here is what he said:
“Despite the popularity of cheap smartphones, this will never be the future of Apple’s products. In fact, although Apple’s market share of smartphones is just about 20%, we own the 75% of the profit.”
Update: Huh, here we go again. That was an incorrect translation from a Chinese web site. The real quote was:
“Apple has always focused on providing the best products for its consumers, we’ve never blindly chased market share.”
Finally, the next time you read some pie in the sky rumour about a cheap iProduct, remember these words from Steve Jobs when the tech press insisted Apple had to make a cheap laptop or netbook.
“There are some customers which we chose not to serve. We don’t know how to make a $500 computer that’s not a piece of junk, and our DNA will not let us ship that. But we can continue to deliver greater and greater value to those customers that we choose to serve. And there’s a lot of them. We’ve seen great success by focusing on certain segments of the market and not trying to be everything to everybody. So I think you can expect us to stick with that winning strategy and continue to try to add more and more value to those products in those customer bases we choose to serve.”
It is just simple marketing executed with a laser like focus. It’s not rocket surgery, people!