The iPhone 5 (AFP)

As stories of an upcoming launch of a new, more affordable iPhone mount, Apple's Senior Vice President of Marketing moves to quash rumours.

Speaking to the Shanghai Evening News, Phil Schiller said: "Despite the popularity of cheap smartphones, this will never be the future of Apple's products. In fact, although Apple's [global] market share of smartphones is just about 20%, we own 75% of the profit."

In recent weeks speculation has been mounting that Apple intends to launch a 'cheap' or low-end iPhone before the end of 2013 aimed at emerging markets such as China and Brazil where the premium price attached to the company's existing product line is preventing it from growing its market share.

A number of tech analysts and investment banks have been claiming that a discounted phone is the only way that Apple can remain competitive against the growing threat of Android and on January 9 The Wall Street Journal , which was the first to report that Apple was building an iPad Mini, published a story claiming the company was actively working on a "lower-end" iPhone that would use cheaper materials in its shell construction. "The cheaper phone could resemble the standard iPhone, with a different, less-expensive body, one of the people said. One possibility Apple has considered is lowering the cost of the device by using a different shell made of polycarbonate plastic. Many other parts could remain the same or be recycled from older iPhone models," it said.