Apple's former CEO John Sculley says the company will have to make a cheaper iPhone if it wants to compete with the likes of Samsung.

From Techradar:

So it looks like our own Gareth Beavis is in good company.Sculley told Bloomberg that Apple needs to change its high-end approach, because of greater market saturation. Apple needs to adapt to a very different world, he said. As we go from $500 smartphones to even as low, for some companies, as $100 for a smartphone, you've got to dramatically rethink the supply chain and how you can make these products and do it profitably.Greater competitionThe problem is that the competition is now so fierce, according to Sculley.

 Ex-CEO John Sculley says a budget iPhone is a must for Apple