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Q&A: John Sculley, ex-Apple CEO, on his new smartphone venture [San Jose Mercury News](San Jose Mercury News (CA) Via Acquire Media NewsEdge) Oct. 17--More than two decades after handing over the reins at Apple, John Sculley has yet to slow down. The former Apple CEO has spent the latter part of his career as a prolific investor, helping launch scores of companies in Silicon Valley and beyond. From marketing to wearables, his portfolio reflects the range of a man who famously left a soft drink giant to steer an unruly computer company. One of Sculley's latest ventures vaults him into an industry that Apple has come to dominate: smartphones. But Sculley insists that he won't be going head to head with his former firm. His company, Obi Mobiles, delivers smartphones only in emerging markets, like India and the Middle East. In his new book, "Moonshot!," which debuted this week, Sculley argues that easy access to big data and mobile technology make this the prime time to launch a company. In a recent chat with this newspaper, Sculley shared tips for young entrepreneurs, lessons from his latest ventures and reflections on his time at Apple. The conversation has been edited for length and clarity. Q: What have you learned from Obi Mobiles about the smartphone market in emerging countries, and how does it compare with the U.S. market? A: Products that people aspire to -- that are incredibly beautiful, like Apple's -- are really out of reach for the majority of people in places where there's no wireless carrier subsidy. In markets like India, 80 percent of smartphones are sold for under $200, and yet the iPhone can be $600 to $800. So as we look at emerging markets, we're not really competing with Apple or other high-end brands like Samsung. We're really competing with regional brands and some of the other international brands. In emerging markets, people are buying smartphones for the first time. The technology has been commoditized so much, there is little differentiation between products at the $100 price point. Our strategy was to differentiate not on technology but on product design. Our ability to combine a frugal expense model with product design from Silicon Valley and the kind of edgy marketing that I'm known for has helped us differentiate ourselves. We will be in every emerging market, we believe, with the exception of China -- it's just too well developed by other people. Q: What do you think the keys are to marketing in the digital age? A: It's all about focusing on the customer, taking advantage of big data analytics and knowing how to use social media. What's happening is there has been a power shift -- I can observe it as someone who's been in marketing for a long time. The power used to be with the big brands who were the producers of the large industries. What's happening now is that customers are getting really smart, thanks to big data. Customers are paying much more attention to what other customers have to say than to ads from big brands. They look at product and service ratings from customers. It's completely changing the ground rules of marketing. Q: What's the most common mistake you see young entrepreneurs making today? A: When you're successful, you often become a victim of your own success. You can become complacent, and you just assume that the reason that you're so successful is the reason you're going to continue to be so successful. Microsoft missed mobile. Intel missed mobile for a long time. You can go to industry after industry where people missed big opportunities. On the other hand, most really successful entrepreneurs I've talked to, when they open up they will tell you they learned the most from their mistakes. Q: What are some lessons you learned from your time at Apple, and how do they inform your work today? A: Working at Apple for 10 years was a phenomenal experience. I worked with some of the most talented people I've ever worked with. We grew the company 1,000 percent. We had several billion dollars of cash. I also saw how quickly a company's future can change. After I left Apple, they chose to license Macintosh software and go in a different direction. If Steve Jobs hadn't come back, the company could have easily disappeared. That's the fortune of those companies. You can be doing really, really well, and if you miss a window of opportunity, things can change incredibly fast. It's heavy lifting running a Silicon Valley company. Q: Where do you find your energy after so many years of working at this pace? A: First of all, I don't do the heavy lifting -- I don't run any of these companies. The hard part is being in the management role. My role is mentor, rain maker -- opening doors to getting capital, helping recruit people. I'm not the decider. I'm another set of trusted eyes as an adviser. Also, I'm in great shape -- I run every day, I eat well and I'm happily married. You have to have your emotional health in really good shape . I do this because I want to do it. Q: What do you think of Apple's new product lineup? Do you see any blockbusters? A: Apple is following the same principles Steve created, and Tim Cook is doing a spectacular job. I think the iPhone 6 and iPhone 6 plus are just spectacular products. I think Apple has got at least two years just satisfying the installed base of people who already have iPhones. What really interests me is Apple Pay. I think Apple Pay could be one of the chances for Apple to really bring in an entirely new way of using Apple products. It will be inspiring to everybody else. What Apple has to do is keep it really simple for the user, but it's a really complex challenge to put all the pieces together. Contact Julia Love at 408-920-5536; follow her at Twitter.com/byJuliaLove. JOHN SCULLEY Age: 75 Birthplace: New York City Education: B.A. from Brown University, MBA from the Wharton School of the University of Pennsylvania Jobs he has held: President/CEO of Pepsi-Cola Co., CEO of Apple, Founder of Zeta Interactive, Founder of Obi Mobiles, Founder of Misfit Wearables, Founder of Inflexionpoint Acquisition Corporation Boards he serves on: 3C Interactive, Real McCoy Rum, 800razors.com, Pivot Technology Solutions, Inc., PDQ fast casual restaurants , OpenPeak, MDLIVE, Inc., Zeta Interactive, FlexPharma Family: Wife, Diane; two children. Residence: Palm Beach, Fla. Five things about John Sculley 1. Grew up in Bermuda. 2. Was a Ham radio operator when he was 13 years old. 3. Invented a color TV cathode ray tube when he was 14 years old. 4. Steve Jobs asked his son, Jack Sculley, to write the first MIDI music interface software for the Mac. 5. Led the design team at Pepsi that created the first plastic bottle for soft drinks. ___ (c)2014 the San Jose Mercury News (San Jose, Calif.) Visit the San Jose Mercury News (San Jose, Calif.) at www.mercurynews.com Distributed by MCT Information Services |