Silicon Valley investor Roger McNamee just delivered a fantastic, wide ranging interview on CNBC about the state of tech.
Here’s the highlights:
- We’re in a cycle where Windows will become irrelevant. For the first time Windows is below 50% of all internet connected devices, so “we’re going to free up $100 billion in revenue over the next few years per year.”
- “As Windows goes down, Apple rises,” thanks to iPad.
- As Apple rises, Google goes down because of the rise of the app model.
- “Apple is just killing the world wide web.”
- However, McNamee still thinks Microsoft stock is a buy because it’s so strong in email with Exchange. Microsoft will be able to crank prices on Exchange.
- Microsoft’s partners like Intel and Dell, though, are going to be slaughtered.
- If you’re looking for a pair trade, go long Apple and short Google, says McNamee. He says Google will be OK, but you can still make money on this trade.
- He’s not excited about Android because A. nobody makes any money from it and B. It has no “anti-virus protection.” He says he’s waiting for the day when “some 16 year old kid in the eastern bloc presses a button and erases every body’s hard drive. I’m serious.” He added, “You had 64 apps removed because they were stealing credit card info.”
- McNamee is very bullish on Apple. He asks, what if the iPad is like the iPod market and Apple owns 60% of the market for the long run? We’re looking at the biggest hardware company there ever was by a mile.
Here’s the interview: