1M+ iPhone Preorders Through China Mobile: Sculley

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Jan. 15 (Bloomberg) -- Pivot Acquisition Corp. Chairman and Former Apple CEO John Sculley discusses Apple stores in China on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Challenges in china for a number of reasons.

Is china mobile going to be the secret weapon?

It was no secret that they were going to have a deal with china mobile.

I think people hadn't put into context just how large an opportunity this is for apple.

Given the amount of customers?

750 million subscribers to china mobile.

Apple, even as their premium pricing is going to sell an awful lot of iphones, i understand that just in first day since they announced it come over a million iphone orders have come in.

China mobile is offering a free iphone with their highest data rate plan.

For you, is that extra neri?

The idea of get -- is that extraordinary?

Two years ago, no one would say a free iphone.

I remember matt miller standing at the iphone store saying that, if this cost at $800, i would still pay that.

Is that possible?

I don't think so.

Iphone is more like bmw.

Google is more like tesla.

Bmw has been very successful.

Apple sells very high quality products.

But i think they are in a great position out.

Tim cook has done a terrific job of positioning them to make money not just on the hardware, but it is starting to commoditize and start to make money on the services, the app store and itunes.

Even in china, there is a terrific amount of usage of their services on the iphone come even though the market share of the iphone is relatively small.

-- the iphone, even though the market share of the iphone is owing to the small.

Yes, a lot people are using it.

The essence of the guys -- the unsubsidized cost is more than $700. that is more than the average chinese person's monthly salary.

People in china are saying we want larger screens.

Why will they pay that much money for a product that isn't even what they want?

The reality is that a lot people in asia -- obviously china is part of this -- do want bigger screens.

The product is kind of between a tablet -- a fablet -- the cross between a phone and a tablet, not my word.

The phablet is tremendously popular in china.

And it is popular throughout all of south asia.

But doesn't samsung galaxy kind of look like a phablet?

It does.

It looks like a tablet.

There aren't a lot of things by samsung that look like apple products.

Samsung went one step further than apple with these larger screens.

Sam song unquestionably does a google job with the hardware.

Where they haven't yet shown the same level of competence and talent has been on the software and the services.

In silicon valley, they built a big campus to get into this, but there is not much evidence yet that they will have the same level of success with software services that apple has with itunes and the app store.

[phone ringing] speaking of iphones.

This text has been automatically generated. It may not be 100% accurate.

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