Netgear CEO: Apple's closed system just can't go that far

By on January 31, 2011, 11:40 PM
Netgear chairman and CEO Patrick Lo recently slammed Apple CEO Steve Jobs for his business practices, saying that Cupertino would have to change its closed system to compete in the future. Speaking at a lunch in Sydney, Australia, Lo said Apple would have to open its platform to compete with Google in the mobile space, according to The Sydney Morning Herald:
"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," said Lo. "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." "Right now the closed platform has been successful for Apple because they've been so far ahead as thought leaders because of Steve Jobs," said Lo. "Eventually they've got to find a way to open up iTunes without giving too much away on their revenue generation model."

Apple has so far been quite successful in controlling the entire ecosystem around its products, including the software, hardware, content, and services. The company has long dominated the mobile market and zoomed past competitors, but Lo argues that Apple's closed model will not work forever, pointing to how Android recently passed the iPhone in US market share.

Once he was finished thrashing Apple and Steve Jobs, Lo made sure to attack Windows Phone 7, saying that it would only further fall behind Android and iPhone. "Microsoft is over - game over - from my point of view," he said.





User Comments: 16

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Guest said:

Who the heck does this guy think he is?

Sarcasm Sarcasm said:

Guest said:

Who the heck does this guy think he is?

Hrmm I don't know... He might be a CEO of some company or something. Perhaps giving his opinion on certain companies. Gosh who knows who he is. This is a mystery isn't it! Who cares though, how dare he speak ill of Apple? We all know Apple is consumer centric offering only the best product released ever and ever in which they feel it's only right that they charge a 30-100% premium on their products. They love consumers and went as far as changing the type of screws just so we don't have to do it ourselves and let them do the hard work for us when we send in our defective units. I wish Apple would come out with a gaming console already and charge only a small price of $1999. Sony, Nintendo and Microsoft, watch out!

Guest said:

"Who does this guy think he is"

Seriously!? Do u guys not know what netgear is!? Netgear is one of the largest producers and distributors of such things as wireless routers, wireless cards for laptops, electronics for computers and so on, and this guy is the "CEO" of the company. Netgear has been around since almost the beginning of the Internet and has stayed successful throughout all the changes. I'm pretty sure he knows a thing or two about the electronics department and how it works. Yes what he said about Microsoft and apple maybe brash and somewhat ignorant, but he did state that it was his opinion and everyone is entitled to their own opinion. But for you to say and question who this guy is.... Seriously!? It's netgear guys... U gotta at least know that much.

Guest said:

I am not sure about his opinion, but one thing I do concur, that is:

"Microsoft is over - game over - from my point of view," he said.

Guest said:

One thing that the article got completely wrong was the statement that Apple dominate the phone market.... Where? What country? By what yardstick is that being measured? Nokia are still miles ahead in the phone market and while they have made complete bollocks of their last few handsets by sticking crud OSs on them they have nothing to fear from the fruits in Cupertino

fpsgamerJR62 said:

With or without Jobs, Apple will always do things the Apple way. As to whether their closed system of doing business will cause them to lose revenue and market share in the future, it depends on how well the company can keep their fans satisfied and loyal to the Apple brand. Customers will always vote with their wallets and Apple will find out one way or the other whether their business practices will continue to serve them well in the coming years.

Kibaruk Kibaruk, TechSpot Paladin, said:

Ok internets kids go ahead and google for crying out loud... "who the hell is he?" I mean... come on.

I find the statement very close to what is happening.

Leeky Leeky said:

With or without Jobs, Apple will always do things the Apple way. As to whether their closed system of doing business will cause them to lose revenue and market share in the future, it depends on how well the company can keep their fans satisfied and loyal to the Apple brand. Customers will always vote with their wallets and Apple will find out one way or the other whether their business practices will continue to serve them well in the coming years.

I think you sum it up nicely on account of Apple.

Apple has its own way of doing business, and in fairness it works fairly well whether we believe its right or not.

As for the brand, it does have many loyal customers the world over, and as long as it keeps these happy I see no change in that.

Microsoft aren't going to lose the top spot any time soon however. They might lose out to opensource/Android and Apple in some areas, but the Microsoft Office suites, and other related software, not to mention the Windows OS itself are always going to sell.

Staff
Rick Rick, TechSpot Staff, said:

Yes, I believe it "can't go that far". But how far does it need to go? Is Apple already not successful enough?

The closed system may bite Apple in the butt like we've seen before (Macs vs. PCs is a good example), but for now, it is a successful strategy and Apple has already made their billions... and there's nothing to keep Apple from starting new, closed ventures to replace the revenue brought by the old ones on the way out (iTunes, computers, electronics etc..)

Jibberish18 said:

"Microsoft is over - game over - from my point of view,"

Well damn. I can understand why he'd say this with iPhone having a HUGE user base and Android growing exponentially but to say that WinPhone7 is over? Little hasty in your words there Netgear dude. I think the game is just starting.

Guest said:

What a cry baby.

negroplasty negroplasty said:

I love it when smaller and less successful companies give advice to larger and more successful ones lol... not a fanboy, just sayin'.

jobeard jobeard, TS Ambassador, said:

Seriously!? It's netgear guys.
Oh I'm shaking in my boots (not)!

a) We all have experiences, some over several decades which create defacto expectations of the future. Pundits always prognosticate and sometimes they are actually spot on - - usually miss by a mile however.

b) Netgear vs Apple? You got to be kidding. Yea, a router has some firmware and it even has a GUI for configuration. Does that qualify as software experience to weigh against the 30 years of Apple's products? Just recall some significant innovations from Cupertino:

  • the all-in-one Mac
  • the WIMP (aka windows gui) interface that changed MS DOS forever
  • built-in sound and networking
  • plug-n-play network configuration on AppleTalk (yea it was slow)
  • the all-in-one iMac flat panel with a cd/rw in the case
  • the iPod that you carry
  • the iPhone that everyone is reverse engineering to copy

Netgrear has a good product line - - hope they stick with it (less I have to replace mine and get a Linksys).

There is a point however and it's not limited to Apple; Nokia, the world's largest cell phone provider has the same challenge - - how to move forward in a world where new developments keep changing the playing field right out from under you.

Guest said:

Mr. Lo has vastly underestimated the power of innovation, and the laziness or ineptitude of a large segment of consumers. Most Apple customers do not want to tweak and tinker with their devices; they simply want them to work as intended, and that's what Apple products do. Back when the original iPod came out, most mp3 players supported mass storage protocols (MSC), and files could be drag and dropped to them. The iPod did not support this feature, but consumers were willing to pay a premium because the scroll ring was neat. When most mp3 players had a built in FM tuner, people were still willing to pay twice as much for an iPod without that capability. People love wizbang gizmoes, and as long as they look sexy and work as intended, they are willing to pay the premium and won't sweat the restrictive nature of the device.

captaincranky captaincranky, TechSpot Addict, said:

Just recall some significant innovations from Cupertino:

[*]the all-in-one Mac.

Well, if you're talking in terms of product such as iMac and eMac, I find it difficult to consider them, "forward progress". I perceive them as pandering to unknowledgable consumers, who value packaging and style over functionality and user serviceability.

I been put off by compound products such as this in all facets of consumer electronics, from compact stereos on. And don't get me started about about LCD TVs, with built in DVD players, These players are worth about $25.00, but add up to a $100.00 to the price of the unit.

Whatever breaks on one of these "tacky mackys", most often results in a trip to the shop, a huge repair bill, and the loss of the entire computer for an indeterminate period of time.

So, we won't entertain any purchase of one of these gems, no matter in which bizarre lollipop color they decide to offer.

Guest said:

Its funny how history repeats its self, remember AOL?

The CONTROL freaks that simplified the internet experience. I even cut my teeth using them as many others, till they, started getting forceful on what, who, where and when.

At that time, using their product, I realized it tastes like crap!!! That's crap they have been feeding me!!!

Needless to say a mad dash was made by all and look how AOL is now not so brash are they.

Fear not Apples greed blinds the powers of connect to society's needs and they have already started the same mistake as AOL it is matter of time that the glass palace will be in the same boat as AOL still surviving through contacts but not trusted by anymore.

ah.... the price of control is......... mistrust, don't they flipping get it?

thanks for the rant just my opinion

poppasmurf

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