John Sculley, who served as Apple's CEO from 1983 to 1993, has identified OpenAI as the technology giant's "first real competitor" in many years. Speaking at a conference, Sculley stated that artificial intelligence has not historically been one of Apple's core strengths, suggesting the company faces significant challenges in the current technology landscape.
The comments highlight a growing perception that while Apple has dominated the mobile and app-based economy, it may be lagging behind rivals like OpenAI, Google, and Meta in the rapidly advancing field of generative AI. Sculley's remarks point to a necessary strategic shift for the company's future leadership.
Key Takeaways
- Former Apple CEO John Sculley called OpenAI the company's "first real competitor in many decades."
- He asserted that artificial intelligence has "not been a particular strength" for Apple.
- Sculley emphasized the need for Apple to transition from the current "apps era" to a new "agentic era" driven by smart AI agents.
- The role of former Apple design chief Jony Ive at OpenAI is seen as a significant factor in the competitive landscape.
A New Challenger in the AI Arena
During his appearance at the Zeta Live conference in New York City, John Sculley offered a direct assessment of Apple's competitive environment. He positioned the AI research and deployment company OpenAI as a formidable new rival, a status he feels no other company has achieved in recent history.
"OpenAI represented 'the first real competitor' that Apple has had 'in many decades,'" Sculley stated during the event.
His analysis is rooted in the observation that Apple's progress in artificial intelligence has been less visible than its competitors. While companies like Google, Amazon, and Meta have consistently rolled out AI-powered products and updates, Apple has faced setbacks. Notably, a planned major overhaul of its AI assistant, Siri, was delayed earlier this year, fueling speculation about the company's capabilities in this domain.
Who is John Sculley?
John Sculley, 86, led Apple as its Chief Executive Officer from 1983 to 1993. Recruited from Pepsi-Cola, where he was known for the successful "Pepsi Challenge" marketing campaign, he was tasked with bringing mainstream marketing expertise to Apple. His tenure was marked by the popularization of the Macintosh but also by a contentious relationship with co-founder Steve Jobs, who left the company in 1985 before his eventual return in 1997.
The Shift from Apps to Agents
Sculley's critique extends beyond current product roadmaps to a fundamental shift he sees in the technology industry. He described this transition as moving from the "apps era" to the "agentic era."
In this new paradigm, the focus moves away from individual applications toward sophisticated AI systems that can perform complex tasks autonomously on behalf of a user. "In the agentic era, we don't need a lot of apps, it can all be done with smart agents," Sculley explained.
This technological evolution, he argued, will also transform business models. The app-centric world revolved around selling tools and products. In contrast, the agentic model is better suited for subscription services, where customers pay for ongoing value and automated assistance.
Subscription Models as the Future
According to Sculley, subscriptions offer a "much better business model" for the agentic era. This model shifts the focus from one-time product sales to providing continuous service and value, a strategy already adopted by many software and media companies.
He suggested that the next leader of Apple, potentially succeeding current CEO Tim Cook amid retirement speculation, will need to navigate this critical transition. The challenge will be to reorient the company's strategy from a hardware and app store-driven model to one centered on intelligent, subscription-based services.
The Jony Ive Factor at OpenAI
Adding another layer to the competitive dynamic is the presence of a key former Apple figure at OpenAI. Sir Jony Ive, the celebrated designer behind the iMac, iPod, iPhone, and iPad, is now working with OpenAI.
OpenAI acquired Ive's hardware startup earlier this year in a deal reportedly valued at over $6 billion. At OpenAI's recent DevDay conference, Ive indicated that his team is developing devices intended to address some of the usability issues that have emerged with smartphones and tablets.
Sculley highlighted the significance of this development, noting Ive's unparalleled track record in product design. "He's the one who actually designed and built the iMac, the iPod, the iPhone, and the iPad," Sculley reminded the audience.
The collaboration between Ive's design expertise and OpenAI CEO Sam Altman's vision for AI could be a powerful combination. Sculley believes this partnership is uniquely positioned to integrate advanced AI into new forms of hardware.
"If there's anyone who is probably going to be able to bring that dimension to the LLM, in this case OpenAI, it's probably going to be Jony Ive, working with Sam Altman," Sculley concluded.
This move places a legendary Apple alumnus at the heart of its most significant new competitor, creating a compelling narrative about the future of consumer technology and artificial intelligence. Apple has not publicly responded to Sculley's comments.