Former Apple CEO John Sculley gave some advice to Apple’s current CEO Tim Cook on the matter of a budget iPhone.Tuesday, on Bloomberg television, Sculley said that Apple should take into account the realities of the modern smartphone business. The market today is cutthroat and a $500 handset isn’t going to cut it for much longer. It isn’t strange to see a smartphone manufacture sell a phone for as low as $100 in comparison.
John Sculley is all for a more affordable iPhone and recognizes that the only way that is going to happen is if Apple is willing to “dramatically rethink the supply chain and how you can make these products and how you can do it profitably.” Tim Cook who was the former head of Apple’s manufacturing and supply chain under Steve Jobs can make that happen. It’s because of that experience that Sculley says Cook is “exactly the right leader” to do so.
This isn’t just about emerging markets either, though Apple only has a single digit market presence in those countries, but needs a more affordable product to go toe-to-toe with Samsung. “Samsung is an extraordinarily good competitor. The differentiation between a Samsung Galaxy and an iPhone 5 is not as great as we used to see.”