Former CEO Believes Cheaper iPhone is Necessary
News of a cheaper iPhone took the Internet by storm last week, and those hoping for a bargain-basement price for one of the finest pieces of machinery known to man saw those dreams dashed, at least for the time being, when Apple executive Phil Schiller clarified that such a thing is not on Apple’s to-do list.
Enter John Sculley, the former CEO of Apple, who believes that cheap products are the way to go for the behemoth company, all in an effort to gain footing in “emerging” markets.
Sculley told Bloomberg, “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.”
For all his support of the 99-cent store mentality, Sculley did not address the fact that the iPhone is the most advanced smartphone on the market today, and is naturally going to cost more while– most importantly–delivering more.
Apple is, in fact, becoming more competitive than ever before; this week saw the lowest price point for an iPhone yet in New York City, according to Bloomberg, which didn’t provide details.
Sculley may find joy in the fact that Apple is indeed entering emerging markets, with variations of the iPad becoming available in China this week.
Apple has other plans for China, just one example of how the company can enter a new, emerging market without lowering the price of the iPhone and all the potential problems that come with that.
Fans of Apple will no doubt be glad to learn that there are indeed plans to bring the company’s products to as many countries as possible. As for a cheaper iPhone, however, such a thing doesn’t seem likely at this time, a fortuitous outcome for customers who have long paid Apple’s already reasonable prices.
It should not go without saying that Sculley hasn’t held the CEO title at Apple for two decades; he left before the iPhone was even a blip on the radar, and as a result, his views should be taken with a very large grain of salt.