January 18, 2013- Of recent, many people in the tech world are wondering if Apple is preparing a less expensive version of the iPhone to launch in emerging markets worldwide. John Sculley, the former CEO of Apple has now offered his opinion in favor of one.Apple for quite some time has seen the majority of its success in developed areas such as the United States and Europe. In those regions, the smartphone market is beginning to become saturated. In order to continue to grow, Apple will have to turn to the up and coming emerging markets such as India, where current price points are at a dramatically different level, said Sculley in an interview in Singapore.
Sculley added that in India the penetration of smartphones is just 4% at present and at nearly 50% in the U.S. As these products start to become more popular in emerging markets, new price points will emerge, said Sculley. That, he said, will require rethinking the entire supply chain along with how prices are established and money earned.
Analysts for quite some time have said that Apple is designing a new cheaper version of the iPhone for those markets, rumors started to heat up this past week after a report was released that claimed the Cupertino-based Apple planned to launch a lower cost iPhone for China as well as other regions, during the second six months of 2013. One tech analyst predicted that a cheaper version of the smartphone could generate over $6.5 billion in sales for Apple just in 2013.
Sculley also added that Samsung is the biggest challenger to Apple. He said the electronics giant in South Korea is now making phones on the level of the iPhone and that Apple now has a real challenger. He also said Apple could learn how to price products to the middle class in emerging markets from its competitors.