Many people across the world specially in developing countries like Bangladesh, India and China want to get their hands on Apple’s iPhone, but can’t afford it due to its price. Former Apple CEO John Sculley believes that Apple should really make cheaper iPhone to tap these demand.
A rumor was swirling around few days ago that Apple is making a ‘cheap iPhone’ and may launch this year. While the speculation made many people excited, Apple’s Phil Schiller clearly announced that Apple has no plan to make cheaper iPhone. However, former Apple CEO John Sculley thinks Apple should make cheaper iPhone.
According to Sculley, Android devices are one of the strongest competitors of Apple. These Android smartphones are very cheap compared to Apple iPhones. So many consumers across the world, specially people who are from developing countries, tend to buy Android smartphone rather than buying an iPhone due to its steep “price” tag. Though Apple has seen much of its success to date in developed regions like the U.S. and Europe, this is a big barrier for the company to market its products, specially iPhone, in developing countries.
In a Bloomberg Television interview, Sculley said, “Apple has now a real competitor, and it’s got to learn how to sell products that are priced for the price point that the emerging middle class in Asia, for example, can afford. There’s only 4 percent penetration of smartphones in India at this time against almost 50 percent in the United States. As people start to adopt these products in emerging markets … there’s bound to be new price points. That requires really re-thinking the whole supply chain and how you price and how you make money.”