"Well, Carl Icahn is one smart guy," he said. "But the reality is Apple is about building great products, great experiences, and if I were Tim Cook, I'd deal with him the way Steve Jobs would probably with him—not blink."
Sculley, who was Apple's chief executive from 1983 to 1993, said that Apple's cash could be put to better use.
"I would continue to invest in the business and grow the platforms they have," he said. "There's still a lot of growth ahead for Apple without having to use the—what I'd call the old recourse many companies follow when they don't have big ideas like Apple and just go in and buy their stock back or make bigger dividends.