Apple’s Phil Schiller has categorically denied that the Cupertino company is working on a cheap iPhone, putting to rest speculation that we covered skeptically a few days ago and the Wall Street Journal and Bloomberg also published.

As The Next Web translated, Schiller said this:

“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 percent, we own the 75 percent of the profit.”

Of course, Steve Jobs — who probably taught Phil Schiller everything he knows about marketing — also said Apple would never made a 7-inch tablet. And frankly, we should wonder how truthful Schiller is being when that tired old 75-percent-of-the-profit line comes out of Apple’s back pocket, because it’s only true in a very narrow, specific, and nuanced sense, even if you’re very, very generous about your terms and conditions.

In other words, it’s kind of a lie.

Which doesn’t mean that Schiller is lying about cheap smartphones. But it could mean that while “cheap” smartphones are out — and no one who follows this company realistically thought that it would make something cheap, flimsy, or in any way substandard — significantly less expensive is not.

Point of reference: iPad Mini.

Realistically, as the original Shanghai Evening News story references (awful Chinglish from Google Translate here), Apple made 15 percent of its revenues from China and blessed little from China’s single biggest carrier, the 700-million subscriber China Mobile, which Schiller’s boss Tim Cook was visiting today. You can bet Apple wants that 15 percent to grow significantly.

And with 75 percent of new phones being activated in either Asia or Africa, an $800 handset isn’t going to do it.

A less expensive iPhone may seem crazy, but it is something that can help Apple compete in emerging markets. And it’s just what we humbly suggested in December.

The iPhone 5 is almost 20 percent thinner than iPhone 4, at just 7.6 mm or .3 inches, and it’s 20 percent lighter than the previous model as well. Plus, those diamond-cut chamfered (sloping) angles and glass inlays are not easy to get just exactly perfect.

That’s why Foxconn execs are calling the iPhone 5 “the most difficult device” that the company has ever assembled. And that’s the key reason why today, a month after its initial introduction to the market, iPhone 5 is still in limited supply.

iPhone 5 launched in late September, selling two million in 24 hours, and five million in its first weekend, and continuing to sell briskly. Shipping delays on Apple’s website today are between three and four weeks, meaning that supply is still significantly constrained.

Foxconn did say that the company was improving every day, getting better and faster.

One of the challenges has been build quality. iPhone 5 is partially made of aluminum, which — though it’s lighter — is also softer than the steel in the iPhone 4 and 4S. That’s caused some issues in brand-new phones, especially black models, with some reports saying that half of all phones were scratched out of box, or shortly thereafter. According to Apple exec Phil Schiller, that was “normal.”

When it was just launched, Schiller called iPhone 5 “the most beautiful consumer device that we’ve ever created,” and a “jewel-like device.”

Jewels, apparently, take time to manufacture.

photo credit: LJR.MIKE via photopin cc

July 9-10, 2013
San Francisco, CA

Early Bird Tickets on Sale

Some are already calling it “ScuffGate.” But Apple senior vice president for marketing Phil Schiller says it’s just normal.

The iPhone 5 seems to be much more susceptible to scuffing and damage than its predecessors, the iPhone 4 and 4S. The black model in particular seems to be vulnerable, as we covered yesterday.

As 9to5Mac found, however, Schiller doesn’t seem too concerned. In response to a question from a recent iPhone 5 purchaser whose iDevice is already showing some wear, Schiller replied:

Any aluminum product may scratch or chip with use, exposing its natural silver color. That is normal.

That’s probably an accurate statement, as far as it goes, and kudos to Schiller for not dodging the issue or blaming the owner. But the iPhone 5 has been out now for what … four days? That seems awfully quick for a presumably well-manufactured device to show wear and tear. Particularly one that can cost $650 and up without a contract.

Some iPhone 5s are showing wear while never having been in an owner’s pocket. Pockets are, of course, dangerous places for iDevices, being the native territory of predatory keys and carnivorous coins.

Already a fairly noticeable scuff on the left side of the front of the frame on my black iPhone 5. Disappointed. Was never in a pocket.

—
Brian Sweet (@besweeet) September 21, 2012

Even worse, some iPhone 5s are showing wear right out of the box. Ouch.

This is disappointing, to say the least, and runs the risk of being a much bigger deal than AntennaGate which, after all, you could avoid simply by moving your fingers. Apple users place a premium on aesthetics, and a worn, tatty-looking iPhone looks as bad on them as it does on Apple.

And this looks like it is completely capable of costing Apple some serious cash:

WOW some serious scuff marks on my iPhone 5 already. Back to Apple for the white one I reckon. #WWJC

—
  (@flawlessfox) September 24, 2012

At this point, unless Apple can come up with an app that magically fixes scratches in aluminum, I have two words of advice for those who just absolutely must have the latest iPhone:

1. Buy a Jiffy Marker
2. Or, buy white

And, Phil: I think you’re going to have a marketing nightmare on your hands.

photo credit: thronx via photopin cc