Rumours have been circulating that Apple will eventually release a budget version of the iPhone. This cheaper model would go into direct competition with the mid-range Android phones in the market.

The obvious benefit to Apple would be an increase in market share. The problem is that producing an iPhone mini could hit Apple’s profit margin and could also compromise the ‘premium’ feel of their products.

The last thing Apple want to do is devalue their brand considering how many people already pay ridiculous amounts of money for anything with a piece of bitten fruit as the logo.

Phil Schiller, Senior VP of Worldwide Marketing at Apple, recently ruled out the possibility of a cheaper iPhone. He went on to say that Apple currently own “75% of the profit in the market,” despite iPhones only making up about 20% of phone sales.

Regardless of what Phil Schiller says, Apple has been known to make cheaper versions of existing products. Take the iPad mini, iPod nano and MacBook Air for example. These models proved extremely popular, so I wouldn’t completely rule out an iPhone mini… just don’t hold your breath!

Should Apple release a more affordable iPhone?

Let me know your thoughts in the comments below.