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Posted at 11:01 AM ET, 03/ 1/2011

Apple COO adds fuel to the cheap iPhone rumor

By Hayley Tsukayama

In a meeting with Bernstein Research analyst Toni Sacconaghi last week, Apple's Chief Operating Officer Tim Cook dropped hints that the company is planning a cheaper iPhone. According to Forbes, the report has Cook saying that Apple does not want its products to be "just for the rich."

Sacconaghi also met with Chief Financial Officer Peter Oppenheimer and Vice President of Internet Services Eddy Cue.

Rumors of a cheaper iPhone have been circulating since the New York Times shut down reports of an iPhone Nano from Bloomberg and the Wall Street Journal. Apple would not be offering a smaller iPhone, the newspaper said, but one at a lower price point.

Cook's comments seem to add weight to those rumors. Apple's COO also told Sacconaghi that Apple is not going to be "ceding any market" and has some "clever things" planned for the prepaid market.

The report indicates that Apple's top executives are confident about the direction of their company and believe it is focused "on the right things."

A funny note from the Forbes report: Cook said that he expects everyone will soon be sporting smartphones and believes the iPhone is just below food and water on Maslow's hierarchy of needs.

Related stories:

Report: Apple's new iPhone won't be smaller, just cheaper

iPhone Nano rumors continue to swirl

By Hayley Tsukayama  | March 1, 2011; 11:01 AM ET
Categories:  Apple, Gadgets, Mobile  
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Comments

Me hungry! Want iPhone!

Posted by: CafeBeouf | March 1, 2011 12:08 PM | Report abuse

Even if they did come out with an iPhone Nano, I doubt it would be popular at all. The size iPhones and Droids are right now seem to be the perfect size before moving onto needing a Tablet-style gadget. Making them smaller does not seem appealing to me.

Fletcher T.
email marketing solutions |

Posted by: fletcherfinnrss | March 1, 2011 3:49 PM | Report abuse

Even if they did come out with an iPhone Nano, I doubt it would be popular at all. The size iPhones and Droids are right now seem to be the perfect size before moving onto needing a Tablet-style gadget. Making them smaller does not seem appealing to me.

Fletcher T.
email marketing solutions | email marketing services

Posted by: fletcherfinnrss | March 1, 2011 3:50 PM | Report abuse

They already offer a cheaper model, unless you don't consider the $50 3GS cheap.

Posted by: -01- | March 1, 2011 4:14 PM | Report abuse

To the prior commenters: imagine how cool it would be to wear an mp3 player/watch a la the nano with wriststrap attachment, but be able to plug in a wired (or bluetooth) headseat and make phone calls on it. I can see a lot of people doing that.

Posted by: ivb1 | March 1, 2011 6:26 PM | Report abuse

@ ivb1 It's not hard to imagine. There are numerous phones just as the one you describe available in the East. So too, are grey versions of the iPhone in a nano format, which, trust me, is quite painful to operate. Especially texting becomes a major hassle.
But how Cook can introduce the iPhone into the basic necessities of life baffles me though. Carlos Slim, Mr Tracfone, must be feeling a little riled - I mean if there was basic needs, a tracfone would surely fit that catagory.

Posted by: ValeriU | March 3, 2011 11:25 PM | Report abuse

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