Former Apple CEO John Sculley has said that the company should focus on making a cheaper iPhone for emerging markets.
In an interview with Bloomberg Television on Tuesday, Sculley said that Apple need to overhaul its supply chain to meet demand for cheaper smartphones in emerging markets such as India.
"Apple needs to adapt to a very different world," said Sculley. "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."
Sculley's statement comes as Apple saw its share price dip below $500 per share in trading on Monday after a controversial Wall Street Journal story on Sunday evening claimed that the company had halved its component orders for the iPhone 5 due to weak demand.
Sculley points out that the increase in popularity among competitors such as Samsung could be contributing to a decrease in demand for the iPhone 5, noting that the difference between Apple's products and its rivals' has lessened.
"Samsung is an extraordinarily good competitor," said Sculley. "The differentiation between a Samsung Galaxy and an iPhone 5 is not as great as we used to see."
But Sculley did say that he believes Apple CEO Tim Cook's supply-chain expertise makes him "exactly the right leader" for the company, which is expected to begin a biannual product cycle for its devices this year.
The latest reports suggest that Apple's cheaper iPhone, often dubbed iPhone mini, could have a see-through plastic design that is manufactured in the US in order to maintain low-costs.
Last week, Reuters reported that Apple's Phil Schiller had dismissed the idea that Apple would launch a cheaper iPhone, but that report was later withdrawn, reigniting speculation that such device would arrive this year.
SEE: iPhone mini release date, rumours and leaked images
See also:
Former Apple CEO John Sculley: 'People underestimate how well Apple is run'
Television market is 'Apple's game to lose' says ex-CEO John Sculley
Apple faces tough choice on cheaper iPhone
Apple analyst reduces AAPL targets on cheap iPhone margin concerns
Contact Us
Digg
It's easy and free to get the latest news headlines, reviews and opinions straight to your email inbox. Sign up NOW to make sure you receive the latest Mac news, reviews and tutorials on your favourite topics.
Comments received
treadmill said on Wed, 16 Jan 2013
Just keep selling sugared water.
PostScript said on Wed, 16 Jan 2013
Sound advice from the man who almost killed Apple. He was wrong then...
PostScript said on Wed, 16 Jan 2013
Sound advice from the man who almost killed Apple. He was wrong then...
theanimaster said on Thu, 17 Jan 2013
And Sculley opens his trap yet again. Good thing he's not in charge anymore and never will be. iPhone already HAS a cheaper iPhone -- it's called the iPhone 4s (and they're even still selling the older models). See that's the magic with Apple -- their products are so good, people _WILL_ settle with yesteryear's stuff, and Apple doesn't need to waste any money in manufacturing PLUS they get to sell off their old inventory. It's genius. Sculley ain't.
ascylto said on Thu, 17 Jan 2013
This is from the man who brought Apple to its knees. He didn't understand Apple then and he doesn't understand Apple now.
Disclaimer
Opinions expressed here are those of the writers and do not reflect those of Macworld. Macworld accepts no responsibility legal or otherwise for their accuracy of content.
Click here to read the house rules.
Click here for the latest reader comments