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I would not attribute this to Apple's hiring process. It is very easy to have excitingly talented people being dragged down into oblivion by enterprise management decisions.

To tell the truth, there are no questions about quality or stability in Apple's interview :). I think, they need introduce a new 3rd round about this.

No company is perfect, but it doesn't mean they should stop trying to hire competent people.

He’s suggesting their approach to hiring competent people is flawed.

It means they should start trying to hire competent people. What I’m seeing in this list is more like: Did this person study CS and actually remember everything, and did they happen to look through a bunch of normally irrelevant stuff for shits and giggles.

Quality is always an organisational issue not a matter of individual talents.