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Thread: Former Apple CEO: Apple Needs to Overhaul Supply Chain to Reduce Cost of iPhone

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  1. #1
    MMi Staff Writer Akshay Masand's Avatar
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    Default Former Apple CEO: Apple Needs to Overhaul Supply Chain to Reduce Cost of iPhone


    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.
    On the brightside, if anyone is capable of doing that, it’s Apple. Tim Cook has made a slew of significant changes to Apple’s supply chain and manufacturing process when he joined the company as Senior Vice President for Worldwide Operations in 1998. Since then, he’s already helped streamline the company’s operations to make them much more efficient. Now whether Apple wants to make further changes to produce a low-cost iPhone, however, is another matter in itself.

    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.
    We’ll have to see what strategy Apple uses to cater to emerging markets and budget-conscious consumers. Analysts are continuing to predict that Samsung’s share will increase its lead over Apple even more during 2013 if Apple does not change its strategy soon.

    Source: The Washington Post

    Twitter: @AkshayMasand

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    What's Jailbreak? Bloodwork's Avatar
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    I don't think making the iPhone cheaper will boost iPhone sales, it will only make Apple cheap just like any other android device out there. They should improve the iPhone like old times and catch up with the innovation samsung is making with the S3.

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    *T*
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    There is a reason why Sculley is no longer CEO...

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    iPhone? More like MyPhone DaLsim's Avatar
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    Crapple just shot itself, Moving to bigger N better {anti{ishit}}.

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    iPhoneaholic Greatbiguns's Avatar
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    Quote Originally Posted by *T* View Post
    There is a reason why Sculley is no longer CEO...

    Why is there a push for cheaper?
    Cheaper does NOT equal better....
    The push should be for better, more innovative products that the users want.
    Is that so hard to figure out?
    Like an iPad Mini that can make cellular phone calls!!
    Now we're talking

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    Green Apple
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    the iPhone 4 is $0, 4s $99, and 5 is $199.00 with a 2 years contract, I think that is a resonable price for an apple product, Why would apple get even cheaper?

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    My iPhone is a Part of Me iLoveWindows&iPhone's Avatar
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    Quote Originally Posted by Reymago23 View Post
    the iPhone 4 is $0, 4s $99, and 5 is $199.00 with a 2 years contract, I think that is a resonable price for an apple product, Why would apple get even cheaper?
    You obviously have a firm grasp on supply chains, business, costs, and profits....Kidding. The prices you mentioned are what people pay when entering a 2 year contract, the actual retail price of the phone is about $400 or so more, but this still has nothing to do with the profit Apple actually makes off of each phone.

    But I really don't care about any of that right now....I CANT STOP THINKING ABOUT THAT SWEATER!! Where do I get one!!? Apple should include one of those sweaters with each iPhone and up the price $100!! The everyone's happy! Problem solved!
    El Zurdo

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    My iPhone is a Part of Me bmwraw8482's Avatar
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    Quote Originally Posted by Bloodwork View Post
    I don't think making the iPhone cheaper will boost iPhone sales, it will only make Apple cheap just like any other android device out there. They should improve the iPhone like old times and catch up with the innovation samsung is making with the S3.
    What innovation? A screen that's way too big but people are getting used to anyway, NFC that I have yet to see a single person ever use.
    I strongly agree with what you said about cheapness though. If everybody drove a Ferrari it just wouldn't be special would it?
    Innovation like what happened when the first iPhone was released is what they need but it will be extremely difficult to achieve. Innovation like samsung's phones is for Kia drivers.

    Quote Originally Posted by Greatbiguns View Post
    Like an iPad Mini that can make cellular phone calls!
    Wouldn't that make it a galaxy note? Ill never stop laughing every time I see someone with one of those
    Last edited by bmwraw8482; 01-16-2013 at 04:03 AM.

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    iPhoneaholic AUZambo's Avatar
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    Quote Originally Posted by *T* View Post
    There is a reason why Sculley is no longer CEO...
    Exactly. Apple already made the move to make their phones cheaper when they dropped the price from $400 to $200 with the 3G. Of course, that decision may have been AT&T's more than Apple's since they're the ones subsidizing the cost, but my point remains.

    The iPhone 5 is the exact same price as every other high end smart phone.

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    Quote Originally Posted by Reymago23 View Post
    the iPhone 4 is $0, 4s $99, and 5 is $199.00 with a 2 years contract, I think that is a resonable price for an apple product, Why would apple get even cheaper?
    That's subsidized and in the US. You guys get ripped with monthly fees anyways, so 200 for iphone or S3, it doesn't matter. In Europe, the price is 679 euroes without contract, whereas you can get S3 for 420 euroes. And there are cheaper android phones for 150-200 too.
    Or, for example, you get the 5 subsidized for 100 and pay 45 a month, or get an S3 for free and pay 30 a month...

    So you can see the difference.

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    iPhone? More like MyPhone
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    Reymago, that may seem cheap since you didn't include monthly rates. Most countries don't subsidize so paying 650 up front seems high compared to Galaxy. If you want to see how much the phone subsidies are a rip-off just look at the new deal at Walmart for $45 a month.

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    My iPhone is a Part of Me bmwraw8482's Avatar
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    Quote Originally Posted by Villebilly View Post
    just look at the new deal at Walmart for $45 a month.
    But then you have to go to Walmart...

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    Green Apple
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    I could care less about the cost as long as I'm getting what I pay for. The saying "you get what you pay for" has always been the case with apple. You pay more you get more. You pay less you get a cheap plastic phone that's buggy after 1 year of use.

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    iPhone? More like MyPhone
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    Is that what you think of the iPhone 4?

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    Quote Originally Posted by Bloodwork View Post
    I don't think making the iPhone cheaper will boost iPhone sales, it will only make Apple cheap just like any other android device out there. They should improve the iPhone like old times and catch up with the innovation samsung is making with the S3.
    We already have a cheaper i phone it is the i phone 4 and 4s.

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    iPhoneaholic sknet's Avatar
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    all made in plastic would be cost-cheap

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    My iPhone is a Part of Me Donnutt's Avatar
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    Quote Originally Posted by Bloodwork View Post
    I don't think making the iPhone cheaper will boost iPhone sales, it will only make Apple cheap just like any other android device out there. They should improve the iPhone like old times and catch up with the innovation samsung is making with the S3.
    The only "innovation" I see with the S3 is the addition of NFC. It's still plastic and cheap feeling.

  18. #18
    Livin the iPhone Life
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    Scully, as I understand was not a good CEO I would take what he says with a grain of salt

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    Livin the iPhone Life bigboyz's Avatar
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    Android phones are NOT sexy or sleek to me. They are NOT innovative and usually the size & weight of a brick! They are cheaper as they use cheaper materials(plastic over glass, metals) and the OS is not as stable or fluid. I don't mind paying good money for a quality product. I've had every iPhone except for the 5. I love my 4S and will wait for the 5S. Happy shopping everyone :]

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    iPhoneaholic jasvncnt10's Avatar
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    Quote Originally Posted by Donnutt View Post
    The only "innovation" I see with the S3 is the addition of NFC. It's still plastic and cheap feeling.
    I never did understand this. People say its plastic and cheap. Who cares most people put a case on their phone so the plastic doesnt bother me. Maybe im missing something but whats the difference if i have a phone with a glass back and put a case on it or a plastic back and put a case on it?

    Quote Originally Posted by bigboyz View Post
    Android phones are NOT sexy or sleek to me. They are NOT innovative and usually the size & weight of a brick! They are cheaper as they use cheaper materials(plastic over glass, metals) and the OS is not as stable or fluid. I don't mind paying good money for a quality product. I've had every iPhone except for the 5. I love my 4S and will wait for the 5S. Happy shopping everyone :]
    The weight of a brick? LOL. You should really look a the specs. They arent that far off.

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