Apple CEO hints at cheap iPhone

iPhone 5

Tim Cook offers hint at future iPhone plans to placate shareholders

Apple CEO Tim Cook has hinted at the development of a cheap iPhone.

He didn't deny that the iPhone was too expensive to those looking for pay-as-you-go ownership, adding "we are making moves to make things more affordable", in a keynote speech at Goldman Sachs’ Technology and Internet Conference in San Francisco.

However, Cook claimed Apple was unwilling to compromise quality in order to hit price points. Instead he pointed to instances where the company has developed new products to reach consumers wanting to spend less.

On the drive to create a cheaper Mac he said, "we concluded we couldn’t do a great product, but what did we do? We invented iPad."

He also compared the drive to create a cheaper iPhone to the development of the iPod Shuffle. "Instead of saying, ‘how can we cheapen this iPod to get it lower?’, we said, ‘how can we do a great product?’, and we were able to do that."

While Cook didn't drop any more specific hints about future products, his outlines for the future could be designed to ease recent shareholder unrest.

Hedge fund manager David Einhorn is suing Apple to get the company to release some of its formidable cash pile to investors. Apple has nearly £90 billion on hand. The lawsuit comes at a time of choppy trading for Apple, whose share price has fallen since September to $470 per share from a high of over $700.

Cook called the lawsuit "a waste of shareholder money and a distraction", calling Einhorn’s legal move "silly".

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