Rumors of a cheap iPhone in the range of $99 to $129 have been swirling around for more than a week.  In general, I tend to dismiss Apple rumors.

Yesterday when the Wall Street Journalreported that Apple was working on a lower end iPhone, the rumors gained credibility.   The Journal reported that the cheaper iPhone would be made of plastic instead of aluminum and resemble the iPhone 5.

In my analysis, such a move would have meant Apple abandoning Steve Jobs‘ strategies that made Apple successful .

Now the good news is that the rumor is being quashed.  According to Shanghai Evening News, Apple is not planning on a cheap smart phone.  Phil Schiller, senior vice president of worldwide marketing at Apple is quoted as saying that cheap products are not Apple’s future and Apple is not concerned about low market share in emerging markets.  Since Apple CEO Tim Cook has been visiting China, this report emanating from China appears credible, although in the world of Apple rumors there is never a certainty.

My last piece on the subject generated 49 comments and dozens of emails.  It is not a surprise that it is a controversial subject.  I will not comment on all assertions with one exception.  Several readers assert that Apple will simply use low end components and preserve its high profit margins.   Well, this is simply not possible.  The reason is that iOS 6 imposes certain requirements for Apple to maintain a decent user experience therefore ruling out real cheap components in a low end iPhone…Read more at Forbes

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