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I wouldn't count Twitter out yet: Former Apple CEO

Twitter's declining user engagement has triggered concerns among investors, but former Apple CEO John Sculley isn't writing the micro blogging website off yet.

"Look what happened with Facebook over the past three years: they had no position in mobile now they've got half their profits from mobile. These social network businesses can change very, very quickly, so I wouldn't count Twitter out at this point," Sculley, now a high-tech entrepreneur, told CNBC.

Twitter's third-quarter user growth slowed and its loss widened, contributing to an 11 percent decline in after-hours trading on Monday.

Read MoreTwitter shares fall over 10% on earnings report

The site reported a 7 percent on-year fall in timeline views per user – a key of measure of engagement – in the three months to September.

While, the company more than doubled its revenue, its net loss widened to $175.5 million from nearly $65 million during the same quarter last year.

Read MoreTwitter earnings: Investors look for profit in ad products

"[Twitter's] business model is one that's still evolving," said Sculley. "They are trying to put a 'buy' button in and if they are successful with that, it could open up a whole new opportunity."

Twitter is experimenting with a "buy" button in some tweets that allows a mobile user to buy directly from a tweet. Facebook has also been testing out a similar service on its websites that will let consumers purchase products that are advertised on its network.

Next big thing in tech

The next big trend in the tech world is consumers will be firmly in the driving seat, Sculley said.

Twitter
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"When the customer is in control, the customer's going to get the best price, best service, because if they don't, they'll go to someone else who will offer it to them," he said.

As a result, Sculley is investing heavily in companies in Asia that are able to produce cutting edge technology at disruptive costs.

One of his latest ventures is budget smartphone brand Obi Mobiles, which makes devices targeted at emerging market consumers.

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"We're targeting a $100 price point for a high quality smartphone," Sculley said, noting that he aims to differentiate the phones through design and branding.

But there's one emerging market he's staying away from: China.

"We're not going into China because [it's] so well served by Xiaomi and other players," he said. "There's no way we could be successful."