Former Apple CEO Speaks on Cheaper iPhone's Importance
Apple has said it will never offer a cheap iPhone.
Former Apple CEO John Sculley believes a cheaper iPhone is pivotal for the technology giant's future.
The former-executive said in an interview with Bloomberg Television that Apple will have to start focusing on customers residing in developing nations who can't afford high-end handsets, which especially rings true for Apple's premium-priced products.
"Apple needs to adapt to a very different world," said Sculley, who was Apple's CEO for 10 years in the 1980s and '90s. "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."
Stressing that there was "nothing wrong" with the iPhone 5, Sculley said Samsung has now closed the gap pertaining to smartphone features. "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."
The South Korean technology conglomerate was named the worldwide cell phone market leader during 2012 and has also dominated the mobile market in the United States. Its Galaxy S line of smartphones has sold over 100 million units since the original's launch less than three years ago, with the company expecting to announce a record profit of $8.3 billion for 2012's fourth quarter.
Sculley's comments come after Wall Street Journal's sources said Apple was developing a low-cost version of the iPhone, as well as being told that the company is halving its production for the iPhone 5 due to weakened demand.
Although Apple marketing vice president Phil Schiller said the company will never offer a cheap iPhone, a budget variant of its flagship device is expected to generate upwards of $6.5 billion in revenue.
Though the question is, how much does Mercedes rip off their customers like Apple?
Yes it is - the difference is that it's in the other direction
The one and only way I could see myself buying an iphone is if it has all of the following features.
FLAC support.
Highest quality music/audio components.
Card reader, or two.
Lets me install Android, windows phone or keep iOS.
Job's reaction
Cook's reaction
How has the whole "it has no flash support, can't remove battery, cant put in an SD card and can't support some file format that only enthusiasts use" argument been working for ya over the years?
Like Apple, Mercedes has not been a top class car for quite some time. They're status symbols, for frankly, idiots.
Pretentious, clueless idiots drive their cars and sport an iPhone to boot.
I couldn't agree more. When I saw this article I wondered why anyone, anywhere is still listening to this assclown. Whether you like Apple or not, Sculley is one of the most useless executives the world has seen in a long time.
Overseas people have to buy their smartphones at retail, not with the service provider's considerable discount.
Along with other things, very well when you look at market share trends.
Your vaunted, overpriced iPhone is looking like a Mig-21 being left behind by an F-16 at full burner. Sooner or later the (declining) masses of iSheep are going to insist on a phone that isn't state of yesterdays art.
Sure they do, a series, remember the c hatchback, Mercedes sells a wide variety of cars.