Why it’s smart for Apple to be the Christian Dior of tech

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John Sculley: Apple is a luxury tech brand

Apple’s former CEO says it is not a tech innovator, it is a luxurious model.

And that is a sensible transfer, based on John Sculley, who led Apple from the mid 1980s to early 1990s.

Sculley informed CNN’s Julia Chatterley on “First Transfer” Wednesday that Apple (AAPL) has launched into a “fastidiously crafted technique” to promote higher-priced telephones which can be extra worthwhile. He mentioned Apple has solely about 15% market share of the business, however 90% of the earnings.

The corporate is predicted to unveil new iPhones later Wednesday.

The previous chief govt mentioned Apple is now extra an organization like LVMH (LVMHF), the luxurious style firm that’s identified for excellent designs and types like Christian Dior.

Sculley, who famously joined Apple to work with Steve Jobs after serving as president of Pepsi (PEP), mentioned it is a good transfer by present Apple CEO Tim Cook dinner to go larger finish. He mentioned the business is shifting from “fast innovation” to extra evolutionary adjustments for smartphones and different cell devices.

Sculley mentioned firms like Samsung tackle extra threat by attempting to push the envelope with new options for telephones. Apple, alternatively, can sit again and wait to adapt to altering client tastes.

As for what’s subsequent from Apple, Sculley, who’s now chairman and chief advertising and marketing officer at pharmacy advantages administration firm, RxAdvance, mentioned he thinks Apple, together with Google and Android proprietor Alphabet (GOOGL), will look to do extra in healthcare.

This is how much money Apple makes on iPhones

The Apple Watch already has a number of monitoring options to assist individuals observe fundamental well being measures like their coronary heart price and sleep exercise, for instance.

Sculley additionally mentioned that it makes extra sense for Apple to maintain investing in its profitable companies companies — and that it possible will do extra within the linked automotive market and augmented actuality.

However simply as Jobs famously promised “another factor” at Apple occasions, Sculley mentioned that he thinks Apple should still be engaged on issues which can be being saved secret — though the most recent adjustments to the iPhone is probably not that revolutionary.

“There’s at all times one thing that is sudden. So keep tuned,” he mentioned.

CNNMoney (New York) First printed September 12, 2018: 11:38 AM ET

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