“The big story in the land of Apple this week is that it’s working on a cheap iPhone. DigiTimes, the Wall Street Journal, and Bloomberg all says Apple has a less expensive iPhone in the works for this year,” Jay Yarow reports for Business Insider.

“Apple’s SVP of marketing Phil Schiller did an interview with the Shanghai Evening News this week. He was asked about the cheap iPhone. He seemed to shoot it down,” Yarow reports. “But, there’s a twist. His interview may have been misinterpreted… Reuters retracted its story based on the Shanghai Evening News. This is very unusual! And the baffling thing is that the original story doesn’t appear to have had any major changes. Everyone is looking for the changes, and they can’t find anything.”

Yarow reports, “If Reuters is pulling its story and not replacing it, it suggests something significant has been lost in translation and Schiller’s dismissal of a cheap iPhone might not have happened at all. None of this would be necessary if Apple just told the dozens of reporters emailing asking exactly what Schiller said. For some reason, that’s not how Apple chooses to do its business.”

Read more in the full article here.

MacDailyNews Take: Again, as we wrote Wednesday: “You can bet that if Apple enters the pre-paid phone market in emerging markets, they most certainly will have margins and they will make a profit on each device sold.”

Related articles:
Reuters withdraws report of Phil Schiller’s ‘cheaper iPhone’ denial citing ‘substantial changes’ – January 11, 2013
Apple’s Phil Schiller: Cheap iPhone will ‘never be the future of Apple products’ – January 10, 2013
A cheap Apple iPhone would mean the end of Tim Cook at Apple – January 10, 2013
Why a cheaper iPhone model makes economic sense; next-gen iPhone, budget model may both sport 4-inch screens – January 9, 2013
Low cost iPhone? Apple has no problem cannibalizing its own business, typically with good results – January 9, 2013
Cheaper iPhone could boost Apple’s market share but ding margins – January 9, 2013
Gene Munster: 60-70% chance Apple debuts $199 iPhone for emerging markets – January 9, 2013
Bloomberg: Apple developing cheaper, smaller iPhone for 2013 holiday release – January 9, 2013
WSJ: Apple prepping less-expensive iPhone – January 8, 2013
Apple to launch low-cost iPhone with 5-inch display for emerging markets in 2H13, sources say – January 8, 2013
Barclays: Cheaper iPhone for emerging markets ‘key’ for Apple – December 4, 2012
Newsflash: Apple sells premium products at premium prices to premium customers – October 23, 2012