Continuing his speech at the Goldman Sachs conference, Tim Cook was asked how Apple plans to gain market share in the developing markets and what are the plans for a cheaper iPhone.
Cook's answer did not betray some secrets, but made it clear that Apple is not just interested in dropping the price to gain market share. Apple solves price problems by creating new "killer" products.
Tim Cook explained his reasoning:
We would not create something if it was not amazing. See what we did in the prices for those who are most financially sensitive, we dropped prices on iPhone 4 and 4S and in the December quarter we did not have enough iPhone 4 to sell. The level of demand impressed us.
That's why we've made moves to make things more comfortable. If you see in Apple's history, the iPod started with 349 dollars and now you can go to any store and buy a Suffle with just 49 dollars.
For years people have been asking why we did not have a Mac that costs less than 500 or 1000 dollars. We have worked on this and we have seen that we can not create any great product at such a low price. But what did we do? We created the iPad with a starting price of 329 dollars.
As you can see, sometimes you can solve a "theme" in different ways. That is why our goal is to create amazing products and not to hunt for a price limit.
As it seems Tim Cook wanted to make it clear that Apple is really interested in a cheaper iPhone, but this is not going to be a lower version of the current model. It will be a totally new "killer" product.
Dimitrios Georgoulas @ GreekAppleNews