Just hours after Apple’s stock prices fell amid reports of the Cupertino company cutting component orders due to reduced iPhone 5 sales, former Apple CEO John Sculley has suggested that the world’s largest company risks being left behind unless it targets emerging markets with a cheaper iPhone offering.
“Apple needs to adapt to a very different world,” Sculley said talking with Bloomberg. “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.”
Cheaper iPhone Rumours
With a cheaper iPhone being a hot topic on the Apple rumour mill for a number of months, a selection of industry analysts and claimed industry insiders have suggested the iMac maker is currently developing a cut-priced, reduced-spec handset to appeal to the masses.
Said to be scrapping the iPhone 4S and iPhone 5’s glass and aluminium heavy designs in order to cut costs, latest cheaper iPhone rumours have hinted that Apple could launch a plastic backed iPhone handset later this year. As well as using less lustrous materials, a cheaper iPhone is expected to feature a heavily depleted specs sheet with no Retina display and a mid-range camera offering two heavily rumoured components.
Responding to reports of low iPhone 5 sales, Scully has suggested that there is “nothing wrong” with Apple’s latest flagship handset but simply competition is now tighter at the very top of the high-end smartphone market.
“Samsung is an extraordinarily good competitor,” Sculley said. “The differentiation between a Samsung Galaxy and an iPhone 5 is not as great as we used to see.”
With Apple reportedly switching to a six month product cycle in order to rival the ever evolving competition, Scully has stated that the company’s current head, Apple CEO Tim Cook, is “exactly the right leader” to help Apple grow and maximise on emerging markets with a new cheaper iPhone.
Despite continuing rumours and Sculley's beliefs, Apple has refuted claims of an upcoming cheaper iPhone release with Apple Senior Vice President Phil Schiller last week proclaiming: "Despite the popularity of cheap smartphones, this will never be the future of Apple’s products."
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