Carl Pei, the CEO and co-founder of Nothing, has taken a jab at Apple Inc. AAPL for its walled garden approach following the antitrust lawsuit filed against the iPhone maker by the U.S. Department of Justice or DOJ.
What Happened: On Friday, Pei took to X, formerly Twitter, and shared a 2023 post targeting Apple’s business strategy, which highlighted Cupertino’s approach of locking in users to its ecosystem.
The 2023 post included leaked emails from the Apple vs. Epic trial, revealing Apple’s long-term strategy of tying its products together to maintain customer loyalty.
While sharing the post, Pei said, “We are told that the most beautiful gardens require walls to thrive and that only life inside the sandbox is safe for living.”
In one of the 2010 emails shared by Pei, Apple co-founder and former CEO Steve Jobs said things like “tie all of our products together, so we further lock customers into our ecosystem.”
In another 2016 email, which Apple veteran Phil Schiller sent to now-company CEO Tim Cook, it was mentioned that “In the absence of a strategy to become the primary messaging services for the bulk of cell phone users, I am concerned that the iMessage on Android would simply serve to remove an obstacle to iPhone families giving their kids Android Phones.”
While some people agreed with Pei’s sentiments, others disagreed with him and called the Nothing CEO a hypocrite, saying he “followed Apple in many ways.” One person also said Pei’s remarks are “just pure hatred towards Apple.”
Why It Matters: The DOJ’s lawsuit against Apple, filed on Thursday, alleges that the tech giant violated antitrust laws by restricting competitors’ access to iPhone hardware and software features. This is the first case accusing Apple of illegally maintaining its dominant position.
Apple has been under increasing scrutiny for its business practices. The DOJ’s lawsuit also blamed Apple for the lack of success of major companies like Amazon.com Inc., Microsoft Corporation, and HTC Corporation.
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Apple has vowed to fight the lawsuit, asserting that it poses a threat to the company’s core principles and its ability to innovate. “This lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets. If successful, it would hinder our ability to create the kind of technology people expect from Apple—where hardware, software, and services intersect,” the company told Benzinga.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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