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Its amazing that this "inaccurate story" made its way through the major media outlets that include Rueters, WSJ, and the New York Times. Thats very embarrassing for these cos.
I agree that tech journalism is in the pits, but the story that they're withdrawing was quite believable:
It makes sense that an Apple exec would say that they're not interested in making a low priced phone if they have to sacrifice quality.
They say stuff like that all the time.