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Apple Exec Says No Cheap iPhone

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    SAN FRANCISCO, CA - SEPTEMBER 12: The new iPhone 5 is displayed during an Apple special event at the Yerba Buena Center for the Arts on September 12, 2012 in San Francisco, California. Apple announced the iPhone 5, the latest version of the popular smart phone as well as new updated versions of the iPod Nano, Shuffle and Touch. (Photo by Justin Sullivan/Getty Images)

    Apple's marketing chief said that the company won't create a cheaper iPhone, despite the latest rumors.

    Marketing head Phil Schiller told the Shanghai Evening News that the company would not create a cheaper iPhone, according to Reuters. Instead, he pointed out that Apple's marketshare was 20 percent of the smartphone market but commanded 75 percent of the profit.

    Schiller also said that Apple had no intention of creating the cheap phone to open up a new market.

    "Originally, many in the Chinese market used feature phones. But now a few companies are starting to use cheap smartphones to take the place of feature phones," Schiller was cited as saying. "But this is not a direction that we want to be heading in with our products."

    China is Apple's second-largest market, so it's not surprising that Schiller attempted to kill the rumor that the company was creating cheap iPhones. Apple wants China to buy the fully-priced gadgets and not hold out for something cheaper. Apple chief Tim Cook flew all the way to China to try to make a deal with China Mobile, for heaven's sake, so they surely don't want rumors ruining their plans.