John Sculley Apple: Does the name John Sculley sound familiar? If so, you know your Apple Inc. (NASDAQ:AAPL) trivia. He was the Chief Executive Officer of the tech giant from 1983 to 1993. Although this was roughly 20 years ago, it is safe to say that Sculley still knows a thing or two about the company as well as the tech industry in general.
In a recent Bloomberg Television interview, Sculley discussed his thoughts on Apple Inc. (NASDAQ:AAPL) bringing a cheaper iPhone to emerging markets. While some people are against this, including Apple Senior Vice President of Worldwide marketing Phil Schiller, there are others who feel that it is a necessity. It is safe to say that Sculley fits this mold.
Here is what he had to say in the interview:
“Apple needs to adapt to a very different world. 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.”
Even if Apple Inc. (NASDAQ:AAPL) does move in this direction, it does not mean the cheaper option will be available throughout the world. Some believe that if this ever happens, it will be for emerging markets only.
While Apple Inc. (NASDAQ:AAPL) continues to ponder the future, more specifically the pros and cons of releasing a cheaper iPhone, other competitors are beginning to make inroads at a lower price point.
Sculley went on to add:
“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.”
In the interview, Sculley also discussed the possibility that rival companies are beginning to catch up to Apple Inc. (NASDAQ:AAPL) in terms of innovation.
According to a follow-up article by AppleInsider, Apple may no longer have the innovation lead that it enjoyed for so many years:
“Sculley also suggested that handsets from rival manufacturers are catching up to Apple in terms of innovation. He pointed out that the differences between the iPhone and a model from a competitor like Samsung have decreased to a point where the two are nearly on equal footing.”
Although Sculley has been away from the company for quite some time, he still has strong opinions. While his comments may sound critical and overbearing, he feels that the company is on the right page. He added that CEO Time Cook is “exactly the right leader” thanks to his expertise in supply chain matters.
How do you feel about these comments by former CEO John Sculley? Do you agree with his thoughts?
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DISCLOSURE: I have no positions in any stock mentioned.
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