Elevation Partners co-founder: Apple is acting like a "dumb monopolist"

In a recent interview with Bloomberg Television, Roger McNamee, the managing partner and co-founder of Elevation Partners, said Apple is acting like a "dumb monopolist" in how it's operating.

McNamee said Apple has been making moves that are "obviously anti-competitive." He cited the company's App Store and recent changes to its retail stores as examples of some of its anti-competitive moves.

"Now they're consciously trying to slow down web applications on their platforms – [such as] HTML 5, the next-generation web development environment," McNamee said. "You look at that and go, 'guys, why are you doing that?' All the HTML 5 development is on Apple platforms; just let it happen. ... When I look at Apple today, I see them doing crazy things. Like they laid off a ton of people who worked in the Apple Stores. The retail experience went down the toilet the next day, to the point where there was this huge backlash and they were forced to rehire some of the people."

As a stockholder, McNamee was disappointed, as he said cutting costs was not a competitive decision for a company with the "highest-margin hardware business in the last 25 years." Such a decision harms Apple's brand by reducing the value of Apple stores, McNamee said. He then went on to say that after Steve Jobs died, Apple has begun to do "all the thing you would expect a dumb monopolist to do."

In addition to his criticism for Apple as a whole, McNamee wasn't impressed with Apple's iPhone 5 announcement.

"The iPhone 5 is the first one that's not a giant leap forward hardware-wise against Android," he said. "... I mean, it's cool, but it's not like blow-away cool the way that the iPhone 4 was. And I look at this and I go, 'huh?' You always wonder what's going to be the end for a monopolist, and you can see that Apple's already doing the things that – it'll take five years, but they're doing the things that lead to becoming less successful."

Source: Bloomberg Television

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I find him to be an iSheep when he started talking about content providers. He said Windows is dead and basically the iPhone and the iPad are the way to go. He's got 2 iPhones and is eager to get his preordered iPhone 5. And as you know he didn't want to talk much about apple's problem. It just seems like he is not happy that Steve Jobs is dead. Because Steve is dead, it seems that he feels theatened that his cult is slowly losing popularity.

Wow, Apparently content just magically appears in front of consumers... His total lack of understanding about how content will be delivered is quite staggering. Electronic content requires a medium (tablets, tv, smart phone, etc..). The tools used to deliver content need to be supplied by someone. Who ever controls the tools (e.g. devices, cloud infrastructure and development tools) will control access and the way content is accessed. And I got news for you Bloomberg is not a software or hardware company..

Like they laid off a ton of people who worked in the Apple Stores

This is reflective of their huge cash reserves, and the cash on hand of MOST major companies doing business in the USA.

It is called a Galt Recession, where corporations band together to weaken labor and suspend investment to blackmail the government for their own interests.

Sadly, even Microsoft has done a bit of this with Gates and Ballmer having hard blows over this, as Ballmer is a corporatist, and Gates is not.

Apple is putting design fist, Ivy has the lead. The rest comes second. If making the design thinner means no innovation on the camera as it won't fit then no innovation. Besides, Apple has not presented any innovation in 3-4 years now, more like being busy catching up to the rest. And with iPhone5 they did not even catch up.

I see this idiot still doesn't know what HTML5 is. anyone remember the other TED talk when he said "we broadcast our shows via satellite in html5". what a ****in clown

by the way no one should listen to this guy. he flip flops so much you think its a joke. one minute hes slamming apple and saying they should be destroyed during the pre launch(cuz he invested), then the next minute hes saying apple will rule the world. one minute hes saying google is toast, the next minute hes saying they are the best. one minute he's saying facebook is the best. the next minute hes saying facebook is garbage.

vcfan said,
I see this idiot still doesn't know what HTML5 is. anyone remember the other TED talk when he said "we broadcast our shows via satellite in html5". what a ****in clown

wait, he doesn't know what HTML5 is, yet he was at TED saying something that stupid? *scratches head* I thought TED was "the brightest minds" speaking...

neufuse said,

wait, he doesn't know what HTML5 is, yet he was at TED saying something that stupid? *scratches head* I thought TED was "the brightest minds" speaking...

yes,and everyone afterwards was so embarrassed.

Cleverly talks about how people that "make the tools" for consumption will be the next winners, and the Cloud is where it's at, and in the same breath, "Windows is over and being replaced by Ipads and Iphones". As if Microsoft ignores he creation aspect and the cloud.

So all this creation will be taking place on Ipads and Iphones, and Microsoft is no where to be found. My head is spinning, he did come across a sounding like he knows whats up, which is more than good enough for TV.

This guy is not far off. Apple is showing all the signs of a company that is making the decisions that have caused the downfall of other great companies. But that doesn't mean they cannot correct course and stay ahead of the rest of the industry.

CJEric said,
Anyone care to explain what he's talking about with regard to HTML5 ?

*turns idiot mode on in brain* well obviously you can only write HTML 5 on an Mac since its a Mac specific language, like Objective-C, therefor you can only make it on a Mac... now since Apple controls this wonderful invention of their's.. HTML5 that is, they can show it down since they write all the interperters for it also, since only WebKit understands it of course... now slowing down the interperters, you make the app store look better and faster therefore you now have to buy apps if you want speed! *turns off idiot mode*

This guy's on crack...

CJEric said,
Anyone care to explain what he's talking about with regard to HTML5 ?

Apple makes money from apps. If you could go to a website on an apple device and have the same experience it would cut them out. Main reason flash was not allowed as well.

CJEric said,
Anyone care to explain what he's talking about with regard to HTML5 ?

I believe what he means is that the speed at which HTML5 has been adopted is due to Apple's platforms. They've killed Flash on the mobile web, which is why HTML5 has seen so much support.

At least, that's what I think he's saying. I could be totally wrong. His comments seem to veer off and jump from topic to topic very quickly.

CJEric said,
Anyone care to explain what he's talking about with regard to HTML5 ?

Apple doesn't allow the faster nitro javascript engine for HTML5 based apps. The UIWebView component uses slower, non-accelrated JS engine which makes them look bad performance wise compared to native iOS apps.

He also said Windows was done and MS should make Skype phones (15:20) for the developing world. Eh? I think some people like to hear themselves talk.

Let's hope these Mactards get a wake up call from all this. iPhone5, iOS6, the Samsung lawsuit, their monopolist attitude. Let's hope this is the beginning of the slow end of Apple.

j2006 said,
Let's hope these Mactards get a wake up call from all this. iPhone5, iOS6, the Samsung lawsuit, their monopolist attitude. Let's hope this is the beginning of the slow end of Apple.

Wont be surprised if Apple goes down the drain. MS will take them over this time instead of bailing them out once more.

This quote alone shows he has no idea what he's talking about:

"The iPhone 5 is the first one that's not a giant leap forward hardware-wise against Android," he said."

Astra.Xtreme said,
This quote alone shows he has no idea what he's talking about:

"The iPhone 5 is the first one that's not a giant leap forward hardware-wise against Android," he said."

Why, because what he said was true? I don't get it.

Lexcyn said,

Why, because what he said was true? I don't get it.

iPhone 4S maybe? It was way less of a leap than the iPhone 5

Astra.Xtreme said,
This quote alone shows he has no idea what he's talking about:

"The iPhone 5 is the first one that's not a giant leap forward hardware-wise against Android," he said."

Huh? The iPhone 5 is nothing forward of a spectacular fail. Android and Windows Phone are bringing more to the table than the iPhone for the first time since ever. How is what he said not true?

Astra.Xtreme said,
This quote alone shows he has no idea what he's talking about:

"The iPhone 5 is the first one that's not a giant leap forward hardware-wise against Android," he said."

I disagree

iphone 4 introduced antenna gate, which was extremely innovative and no other phone had it.

iPhone 5 introduces Scuff Gate, same, mind blowing innovation, again, one more time, thanks to 'quality" materials.

http://cdn3.sbnation.com/impor...s/1201343/image9_medium.jpg

Astra.Xtreme said,
This quote alone shows he has no idea what he's talking about:

"The iPhone 5 is the first one that's not a giant leap forward hardware-wise against Android," he said."


Considering the hardware in the SGS3, One X and other Android phones, I'd say he is correct on that statement.

Rudy said,
iPhone 4S maybe? It was way less of a leap than the iPhone 5

Was about to post this ironically as we all know Astra.Xtreme didn't mean it that way.

Rudy said,
iPhone 4S maybe? It was way less of a leap than the iPhone 5

Yeah, the article is wrong. This is the second iPhone release that's not a giant leap forward versus Android devices. And now you've got Windows Phones closing in on the hardware and feature set as well.

I was used to iPhone blowing away everything else on the market and since the iPhone 4, that just hasn't happened.

Lexcyn said,

Why, because what he said was true? I don't get it.

What didn't the new one include that Android has? NFC? Well nobody uses that. A quad core? That hardly gives Android an edge. Honestly, I don't know what the guy is referring to.

Astra.Xtreme said,

What didn't the new one include that Android has? NFC? Well nobody uses that. A quad core? That hardly gives Android an edge. Honestly, I don't know what the guy is referring to.

Maps.

Astra.Xtreme said,

What didn't the new one include that Android has? NFC? Well nobody uses that. A quad core? That hardly gives Android an edge. Honestly, I don't know what the guy is referring to.

You realize that he's not saying the new iPhone isn't as good as the others, he's just saying it's "not a giant leap forward hardware-wise"?

Astra.Xtreme said,
This quote alone shows he has no idea what he's talking about:

"The iPhone 5 is the first one that's not a giant leap forward hardware-wise against Android," he said."


I think he phrased it poorly. What I think he meant to say was all the previous iPhones have been leaps-and-bounds ahead of Android devices when they were released, hardware-wise. And I think he's mostly right. The 4S wasn't a massive leap from the previous iPhone, but it still had better hardware than all the Android devices at the time (at least that I can think of).

If you listen to the full interview, the context is that Android manufacturers have started to catch up in terms of hardware, which is why he doesn't think the iPhone 5 is a big leap.

dr_crabman said,

You realize that he's not saying the new iPhone isn't as good as the others, he's just saying it's "not a giant leap forward hardware-wise"?

Yes, I know... Hence why I listed things that are hardware...

Anthony Tosie said,

I think he phrased it poorly. What I think he meant to say was all the previous iPhones have been leaps-and-bounds ahead of Android devices when they were released, hardware-wise. And I think he's mostly right. The 4S wasn't a massive leap from the previous iPhone, but it still had better hardware than all the Android devices at the time (at least that I can think of).

If you listen to the full interview, the context is that Android manufacturers have started to catch up in terms of hardware, which is why he doesn't think the iPhone 5 is a big leap.

Oh, I know. The 4S really wan't a lead ahead of everybody else though. It was very comparable to the Galaxy S2. What I was referring to, is the guy doesn't understand how technology evolves. There were giant leaps when we went from single cores to dual cores and then expanding screen sizes. We're at the point now where a dual core is plenty of processing power for anything on a phone and anything more just decreases battery life. Again, I just really wondered what he was expecting the 5 to have that would leap it ahead of everybody.

Astra.Xtreme said,
What didn't the new one include that Android has? NFC? Well nobody uses that.

Really? I only know two people with NFC and they use it all the time
Perhaps what you mean is Apple say you don't need NFC

Anthony Tosie said,

I think he phrased it poorly. What I think he meant to say was all the previous iPhones have been leaps-and-bounds ahead of Android devices when they were released, hardware-wise. And I think he's mostly right. The 4S wasn't a massive leap from the previous iPhone, but it still had better hardware than all the Android devices at the time (at least that I can think of).

If you listen to the full interview, the context is that Android manufacturers have started to catch up in terms of hardware, which is why he doesn't think the iPhone 5 is a big leap.

You're really wasting your time trying to reason with Astra.Xtreme, he is incredibly pro apple and never wavers from that

Teebor said,

Really? I only know two people with NFC and they use it all the time
Perhaps what you mean is Apple say you don't need NFC

i would use nfc where ever i could if it were available to me

-T- said,

You're really wasting your time trying to reason with Astra.Xtreme, he is incredibly pro apple and never wavers from that

You are sadly mistaken... Nice jab though...