We pointed out that “Only Apple Knows For Sure Whether The iPhone 5 Is In Trouble.” Similarly, only Apple knows for sure whether there is in fact a cheaper iPhone in the works. Nevertheless, Bloomberg has just interviewed someone who “probably has the most insights — that we can get at least — into Apple.” And that someone is none other than former Apple CEO John Sculley.
Sculley is of the opinion that Apple needs to adapt to emerging markets primarily by releasing a cheaper iPhone.
“Apple needs to adapt to a very different world,” says Sculley in the interview, which you can watch below.
“As we go from $500 smartphones to even as low, for some companies, as $100 for a smartphone, you’ve got to dramatically rethink the supply chain and how you can make these products and do it profitably.”
Seeing as Apple CEO Tim Cook is “the world’s greatest expert on supply chain,” Sculley believes that he has what it takes to extend the company’s success from developed markets to emerging markets.
In emerging markets, which include a number of countries in Asia, the price points are markedly different from those in, say, the U.S. and Europe. And a lower-priced iPhone is seen as Apple’s best bet in such markets.
If you can’t see the video embedded above, please click here.
Sculley adds that there’s “certainly nothing wrong” with the current generation of Apple’s smartphone. But he notes that “the differentiation between a Samsung Galaxy and an iPhone 5 is not as great as we used to see between Android products and Apple products even a year or so ago.”
It’s a challenge, then, for Apple to step its game up in order to contend with its competitors, the most aggressive of which appears to be Samsung.
A former president of PepsiCo, Sculley is perhaps best known as the first mentor of Steve Jobs. Indeed, it was Sculley to whom Jobs made the legendary pitch, “Do you want to sell sugared water for the rest of your life? Or do you want to come with me and change the world?”
Sculley is now serving as co-founding chairman and managing partner of Pivot Acquisition Corp., whose success in the U.S. he also plans to extend to Asia’s emerging markets.