Indian smartphone market overcrowded: Apple ex-CEO Sculley
06 Aug 2014
The Indian smartphone market is overcrowded with over 20 companies selling their brands, and will not be able to support more than six successful firms in the long run, former Apple Inc chief executive John Sculley said on Tuesday.
Sculley, who was earlier president of the soft drink giant PepsiCo, said on a visit to India that his own firm Obi Mobiles will leverage expertise in marketing and sales to ensure its place in the top six.
Talking to PTI, Sculley said technology has now been "commoditised" and companies need to focus on brand loyalty. "Technology is a commodity ... I grew up in commodity markets and I love that. There is little difference in what's there in a Coke bottle and a Pepsi bottle. It's all in the brand and the loyalty that you can build with the customer."
He said that with commoditisation of technology, many players are trying to differentiate themselves with different features. The experience in consumer businesses that have commodity technology is that one ends up with six companies in the market, he added.
"Markets, even as big like India, can't really support more than half a dozen very successful companies," Sculley said.
He said that the market will see such a situation in about three years. "I think this thing will sort itself out pretty fast. Fast meaning, three years something like that. It's not driven by us, it's driven by how things are happening." he added.
Asked if the handset market will see consolidation, Sculley said, "I don't think people will be buying people, necessarily. I think eventually you have to make money. Some companies will look at it and say, I've got beautiful products, but I can't figure out how to make money in India. Other companies will say I was just never able to achieve what I thought I could, so I'm dropping out. There will be people who will drop out."
