A former Chief Executive Officer says that Apple Inc. has to make renovations to its supply chain in order to sustain demand for inexpensive smartphones in emerging markets.
According to John Sculler, former chief executive officer, as the market for handsets, which includes the company’s iPhone, becomes overloaded in developed areas like Europe and U.S.A., the company will gradually depend on development in emerging markets and this includes India.
Furthermore, Sculley noted that Apple Inc. has to become accustomed to a very “different world” right now. The former CEO said that as the industry goes from $500 smartphones to even as low as some other companies, you have to considerably start afresh regarding the supply chain and how to make such products and make it profitable for a company.
Reports are showing that Apple’s shares are not on its “normal” rates as before as it fell to its lowest price in eleven months in New York the other day. Nikkei also reported that the new iPhone 5 scaled on a weaker-than-expected demand. While there seems to be nothing wrong with the newest smartphone, the difference between the said product and those of its rival Samsung has shrank.
On the other hand, Sculley has given a good note to Apple’s CEO Tim Cook for being a good example of a right leader because of the leader’s expertise when it comes to supply-chain aspect.