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John Sculley, the former CEO of Apple Inc. (NASDAQ:AAPL), has identified OpenAI as major competitor to Apple in years. He also predicted that AI will lead to a shift to subscription-based business models.
At the Zeta Live conference in New York City on Thursday, Sculley, Apple's CEO from 1983 to 1993, called the Sam Altman-led company as Apple’s “first real competitor” in “many decades,” reported Business Insider on Monday.
“AI has not been a particular strength for them,” said Sculley about Apple. The former Apple CEO remarked that OpenAI's agentic AI will take over the demanding tasks in knowledge workers' workflows.
See the price action of AAPL here.
Sculley also addressed the possibility of current Apple CEO Tim Cook retiring soon. He emphasized that Cook’s successor would need to guide Apple through the transition from the apps era to the agentic era. According to him, this shift will prompt more technology companies to embrace subscription-based business models.
“In the agentic era, we don’t need a lot of apps, it can all be done with smart agents,” Sculley said. “That’ll shift more technology companies to subscription-based business models.”
He believes that Apple’s future success will depend on its ability to adapt to this new era.
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Sculley's revelation comes as Apple navigates major shifts in its AI strategy, following a period of lagging behind Meta Platforms (NASDAQ:META), Amazon.com Inc. (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) and Open AI.
In September, the company announced a revamp of its AI stratIgy, prioritizing chatbot-like experiences and overhauling its Siri voice assistant. This move was seen as a response to Apple’s previous dismissal of chatbot-driven approaches, which had driven users seeking a genuine chatbot experience towards standalone OpenAI apps.
OpenAI’s growing influence was further underscored in May when the company acquired Jony Ive’s startup for $6.5 billion. This acquisition, which saw Ive, a key player in Apple’s design history, take on the role of design director at OpenAI, was seen as a significant challenge to Apple’s stronghold in the tech industry.
These developments indicate that OpenAI is not only a significant competitor for Apple but also a driving force behind the evolution of the tech industry as a whole.
Benzinga’s Edge Rankings place Apple in the 63rd percentile for momentum and the 29h percentile for growth, reflecting its average performance in these areas. Check the detailed report here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
