Apple: Inexpensive iPhone Would Be An "Innovative Category-Killer" | Cult of Mac

Apple: Inexpensive iPhone Would Be An “Innovative Category-Killer”



The drawback to success is you’re only as good as your last killer product. Perhaps that’s what Apple executives were thinking when they recently told a Wall Street analyst any rumored low-cost iPhone would have to be more than out-cheap Android, but be a ‘category-killer’ like the iPad and iP

The perfectionist attitude of CEO Steve Jobs could be heard in the comments by Cupertino executives talking with RBC Capital Markets analyst Mike Abramsky. Chief Technical Officer (and frequent Jobs stand-in) Tim Cook and Apple finance chief Peter Oppenheimer let it be known there is no rush to slap the tech giant’s logo on just any inexpensive smartphone. The duo stressed any low-cost handset must dominate the category, that the company will always lead with technology and design.

The execs told the analyst Apple’s products don’t need to compete with Android on price, already having the upper hand with what they called “sustained advantages” of the firm’s solid ecosphere of software, hardware and app distribution.

But perhaps the most telling reason why Apple leaders aren’t in any hurry to sell a cheap iPhone, is that rivals’ attempts to best Cupertino solely on price haven’t worked. A number of competitors, from RIM’s PlayBook to HP’s TouchPad have tried to wrest tablet control away from the iPad, but found themselves either sinking financially or, as in HP’s case, following an embarrassing multi-price-cut pathway. The same goes for the PC industry’s attempt to mimic the success of the MacBook Air.

Despite rumors that a cheap iPhone might go the iPod Touch route by using an inferior (but still excellent) Retina Display, there’s apparently no rush to make a cheap iPhone.

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