Is there a cheaper iPhone in the pipeline?  Apple boss Tim Cook gives strongest hint yet in rare interview

  • The trail-blazing technology firm is looking at 'making things more affordable'
  • Apple CEO seemed to imply less expensive phone at US tech conference
  • Mr Cook also dismissed recent shareholder lawsuit as 'silly sideshow'

An affordable iPhone might be in development, the head of tech giant Apple let slip yesterday.

During a rare interview, Apple CEO Tim Cook appeared to suggest that a less expensive version of their covetable but pricey gadgets might be in the pipeline.

'We are making moves to make things more affordable,' he said at the Goldman Sachs technology and internet conference in San Francisco.

Rare interview: Apple CEO Tim Cook admitted the tech giant was looking at making 'more affordable' products

Rare interview: Apple CEO Tim Cook admitted the tech giant was looking at making 'more affordable' products

The revelation came after Mr Cook said that he saw a 'wide open field' because Apple's iPhone was currently 'only available to 50 per cent of [mobile phone] subscribers in the world'.

Asked whether the problem might be that only 50 per cent could afford an iPhone, Mr Cook said: 'Good question.  Our North Star is "great products" - we would never do something that isn't a great product, that's not why we're on this earth.

'That said, if you look at what we've done to appeal to people that are price sensitive — lower price of iPhone 4, iPhone 4S, in most recent quarter, not enough supply of iPhone 4 - surprised us.'

He added: 'We are making moves to make things more affordable', but insisted Apple still wanted to make something 'great'.

He said: 'If you look at Apple's history, look at iPod: it was $399.  Today you can get an iPod Shuffle for $49.

'Instead of how can you cheapen to get it lower, we were saying how can we make something great?

iPhone 5
iPad Mini

Apple CEO Tim Cook said they wanted to make 'great products' like the iPhone 5, left, and the iPad Mini, right

'The same thing in a different way: people said why don't you have a Mac that's less than $1,000? We worked on them, we couldn't do a great product. What did we do? We invented iPad and it starts at $329.

'Sometimes you can take the issue and solve it in different ways.'

Mr Cook added: 'We will never make a crappy product.'

In response to a question about future innovation at Apple, which analysts have suggested might suffer from a slowing trajectory, Mr Cook said: 'I'm incredibly bullish about the future and what Apple can do'.

'No better place for innovation': The Apple iWatch is thought to be the company's next big thing

'No better place for innovation': The Apple iWatch is thought to be the company's next big thing

He said the culture of innovation at the firm had 'never been stronger', adding that there was a 'belief there are no limits deeply embedded in the values, in the DNA of the company.'

'I feel fantastic about it,' he said.  'There is no better place for innovation.'

Earlier this week rumours flew around the world that Apple was planning an 'iWatch' with camera, Bluetooth, and voice control features.  Designers convinced that the smart-watch was the company's next big thing even mocked up pictures of what the innovation might look like.

During yesterday's conference, Mr Cook dismissed as a 'silly sideshow' a recent lawsuit filed by activist shareholder David Einhorn with a view to get shareholders more money.

Mr Einhorn has accused the company of having a 'Depression-era mentality' which made it hoard vast piles of money with no obvious purpose.

Apple's Mr Cook said that while the company was looking at ways to get shareholders more returns, the cash might be used to make a major acquisition, and said the lawsuit was 'bizarre' when the cash reserves put the company in such a position of strength.

After his appearance at the technology conference, Mr Cook flew to Washington where he was a guest of First Lady Michele Obama at the US President's State Of The Union address.