Netgear CEO Trashes Steve Jobs, Predicts WP7's Demise
January 31, 2011 7:28 AM
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Netgear Chairman and CEO Patrick Lo.
(Source: Flickr.com/Jeremy Toeman)
Says Apple will eventually lose out to the more open Android
Netgear Chairman and CEO Patrick Lo has never been a shy guy, as evidenced most recently by his "scathing attack" on Apple CEO Steve Jobs in an
The Sydney Morning Herald
"Steve Jobs wants to suffocate the distribution so even though he doesn't own the content he could basically demand a ransom," Lo told
, referring to the closed delivery model of iTunes.
This was just one specific criticism from a broad discussion of closed and proprietary products vs. open ecosystems like Google's Android. Lo said that Apple has succeeded so far because they "own the market" of many of their products, like the iPod with MP3 players. However, Lo predicted that, like Betamax vs. VHS and Mac vs. Windows, the open platform -- again referring to Android -- would win in the long run.
"Once Steve Jobs goes away, which is probably not far away, then Apple will have to make a strategic decision on whether to open up the platform," Lo told
. "Ultimately a closed system just can't go that far ... If they continue to close it and let Android continue to creep up then it's pretty difficult as I see it."
Lo predicted that Android would eventually become the standard for a range of consumer electronic devices, pointing to its recent
overtaking of Apple in global market share
He also attributed Jobs' trashing of Adobe Flash as nothing more than an issue of ego.
As for Windows Phone 7, Lo said that Microsoft had fallen behind its competitors and would continue to languish there. "Microsoft is over - game over - from my point of view," he told
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1/31/2011 10:05:13 AM
"Problem with android is that Google almost doesn't make a dime out of it. It uses only open stuff, and look where Linux is today."
Google's business model is selling Ad space to advertisers, google/android does not need to sell anything directly to consumers to have a lucrative and successful platform for developers, advertisers and consumers. Last time I checked their model makes a sh!t ton of money and android, chrome, Gmail etc. is a big part of it.
1/31/2011 11:07:37 AM
Last time i checked google stock price hasn't come close to its 2007 peaks while Apple made 300% return. Their search brings in cash and grows about 20% a year but they spend and spend on many new things that doesn't give them a penny.
Also it is not impossible that google won't be the dominant search engine for all eternity.
And if it does, opponent could have a case of illigal bundling of products by making google the default search engine on their android devices. Microsoft in particular could argue such a case since they where precluded to bundle internet explorer by default with windows in Europe.
On an other note, Microsoft basicaly lost a decade (2000-2010) but is getting back up. Nobody gave them a chance with their Xbox going after dominant Sony and even nintendo, yet here they are. So i take any comment about microsoft is dead with a grain of salt.
1/31/2011 11:23:14 AM
One of the core reasons that Apple stock is so high is because they have a ludicrously large pile of cash that is just sitting there. The investors want that cash to be paid out to shareholders as a dividend since Apple seems unlikely to spend it - probably because they would have to buy both GM and Ford to actually spend it all. Microsoft did a one-time dividend of their cash hoard back in the early 2000's.
That is the main reason that their P/E is so high. It is probably trading at about 30-40% over where it should actually be, based upon performance and earnings trends.
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