The rumor that Apple is currently working on a cheaper low end iPhone for emerging markets is rife at the moment and former Apple CEO John Scully thinks it is a necessity for Apple to do just that. Sculley, who was Apple CEO between 1983 and 1993, believes that Apple must venture into the emerging markets with a low end iPhone if it is to continue its growth. Sculley was speaking in a television interview with Bloomberg from Japan last night.
“Apple needs to adapt to a very different world,” Sculley said. “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.”
“Samsung is an extraordinarily good competitor,” Sculley said. “The differentiation between a Samsung Galaxy and an iPhone 5 is not as great as we used to see.”
For those keeping track at home, a Scully comments are like Steve Wozniak comments, and should never be confused for anything other than one guys long-out-of-the-loop opinion. However, like Wozniak comments, mainstream media keeps eliciting them, and they can create interesting ripples in the discussion.
Sculley, for what it's worth, also believes that Apple has exactly the right leader in place now that Tim Cook is in charge. Cook’s expertise controlling the supply chain will be critical in Apple’s future success. Sculley will mainly be remembered as being the man who decided along with his board of directors that Steve Jobs was surplus to requirements. He subsequently steered Apple down the path of competing with IBM in a highly competitive market place and as profits eroded and sales diminished, he was forced out of Apple in 1993.
Taking that into account maybe it is no surprise that he still believes that Apple needs to compete in that market again today.