"Originally, many in the Chinese market used feature phones (regular wireless phones). But now a few companies are starting to use cheap smartphones to take the place of feature phones," Schiller was cited as saying in his first interview with a Chinese newspaper.
"But this is not a direction that we want to be heading in with our products," he was quoted as saying in the report.
Earlier this week, the Wall Street Journal cited anonymous sources as saying Apple could release a cheaper iPhone as early as this year.
In an interview with the Xinhua News Agency this week, Apple CES Tim Cook said he was confident China will someday become the company's single largest market.