Apple Inc. AAPL is facing a new lawsuit from the U.S. Department of Justice or DOJ, and this development could potentially lead to a surge in consumer demand for alternative smartphones, according to entrepreneur and former presidential hopeful Vivek Ramaswamy.
What Happened: In a video posted on Friday, Ramaswamy discussed the latest antitrust lawsuit against Apple, which he believes could prompt consumers to seek out alternatives to the current smartphone market.
Sharing the video on X, formerly Twitter, Ramaswamy said, “It's the 40th anniversary of the Macintosh this year. This week Apple got sued by the DOJ for large scale antitrust violations.” The original Macintosh was launched in 1984 by Steve Jobs-led Apple.
Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox.
In the video, the former presidential candidate highlighted the bipartisan support for the DOJ lawsuit and suggested that it could lead to a significant shift in consumer demand.
He pointed out that previous antitrust actions against Apple, such as the EU’s demand for Apple to open up its devices to non-App Store apps, have already impacted the company’s operations.
He also noted two key areas of consumer concern that could drive this shift: a desire for greater privacy and a growing recognition of the negative impact of smartphone dependence on personal happiness.
“So I think this is going to open up a series of opportunities for entrepreneurs, maybe the next generation of Steve Jobs is ironically to bring It full circle to fill customer demand in two key areas,” he said.
Ramaswamy predicted that these factors, combined with the current antitrust lawsuit, could create a significant opportunity for entrepreneurs to develop alternative smartphone options that could challenge Apple’s dominance in the market.
He also went on to say, “That so many people are moving to Signal suggests that people would just as they move from iMessage to Signal within the iPhone may move from the iPhone to a different phone that isn’t tied to the cloud, that gives them a greater degree of privacy.”
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 third antitrust case against Apple in the last 14 years and the first to accuse the company of illegally maintaining its dominant position.
Apple has vowed to fight the lawsuit, stating that it poses a threat to the company’s core principles and its ability to innovate. “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 in an emailed statement.
DOJ has also accused Apple of the failure of many prominent and well-financed companies like Amazon.com, Inc., Microsoft Corporation, and HTC Corporation, in the smartphone arena.
Despite the legal challenges, Apple’s stock has been performing well, with a year-to-date increase of 6.5%.
Check out more of Benzinga’s Consumer Tech coverage by following this link.
Read Next: Apple Under EU Scrutiny Over Its Decision To Ban Epic Games’ Developer Account
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
