Obi Mobiles is the new kid on the block trying to compete for market share against Apple Inc. (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT) in the smartphone arena. Obi Mobiles has launched a number of smartphones that specifically target emerging markets. During an interview on Bloomberg, former Apple CEO, John Sculley reiterated that Obi Mobiles has an expansive distribution network that will be used to distribute the new smartphones in key emerging markets.

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There has been a huge transformation of the smartphone landscape with companies developing products that target key markets, as well as customers. Sculley believes Apple Inc. (NASDAQ:AAPL) is a key player despite its products being considered high-end.

“Apple is clearly a big part of it; their tremendous success with the iPhone is one of the foundation blocks for this whole global transformation that we are seeing. Apple Inc. (NASDAQ:AAPL) has got a long run ahead of it, just feeling demand for the iPhone for at least the next several years. They have a great leadership under Tim Cook, so the prospects for Apple to be a part of this future are very high,” said Mr. Sculley.

Obi Mobiles new smartphones will be priced at between $70 and $200 sure to fend off competition from iPhone 6 that goes for as much as $1200 and Samsung Galaxies that costs $700. Obi Mobiles should face stiff competition from Microsoft Corporation (NASDAQ:MSFT)’s Windows Phones that cost for between $200 and $400.

Fierce competition from Xiaomi is one of the reasons that Obi Mobiles will be shying away from marketing its line of products in China according to Sculley. Obi Mobiles has already employed former Apple director for industrial design, Robert Brunner as the company seeks to develop some of the finest products for emerging markets.

Obi Mobiles will be targeting the youth with the new line of products.

“We pick markets where we have experience and we can bring our silicon valley design and marketing point of view and focus at price points that are targeted at very young people, teenagers people in their early 20’s who might love to have an iPhone but it is 100’s of dollars out of reach for them. We can deliver them a really good product at a different price point,” said Mr. Sculley.

Sculley reiterated that Obi Mobiles was not trying to compete against Apple Inc. (NASDAQ:AAPL) but only addressing the needs of people who can’t afford high-end smartphones.

Philippe Laffont’s Coatue Management held 10.1 million shares of Apple Inc. (NASDAQ:AAPL) at the end of June 2014.

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