According to former Apple CEO, John Sculley, Apple must overhaul its supply chain in a bid to make its iPhone cheaper and meet the demand of low-cost smartphones in emerging markets. The Cupertino California company has seen its fair share of success with the device in several markets but going forward, Sculley feels Apple will need to depend on growth in emerging markets, where the handset’s premium price tag just won’t work.
In an interview with Bloomberg Television in Singapore, Sculley said the following:
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.
If the recent comments made by Apple’s Senior Vice President of Worldwide Marketing, Phil Schiller, are anything to go by, then Apple isn’t interested in producing cheap products to help gain market share. As time passes by though, it looks increasingly likely that the company will have to do something in order to keep up with rivals, especially against Samsung which is still its number one competitor. Sculley continued by highlighting the fact that rival devices such as the Samsung Galaxy S lineup, continue to improve and become a greater threat to the iPhone than they have been in the previous years. According to Sculley:
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.
Source: The Washington Post