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This is Apple's 'big failing,' says Roger McNamee

A day after Apple posted profits that beat expectations, sending shares higher in midday trading, technology investor Roger McNamee on Wednesday threw cold water on the iPhone and iPad maker.

Read MoreApple profit beats estimates, revenue short

To McNamee, a managing director and co-founder of venture capital firm Elevation Partners, the tech giant currently faces two main challenges.

The refresh cycle for its tablet offering, for example, is very weak, he said on "Squawk Alley."

"An iPad is not a product you upgrade every year. I still have all three of the iPads that I bought. I still use them all and that's a value from a consumer point of view," he said. "But clearly, [in] the phone market, they break very frequently so the upgrades of people who already have them come much more regularly."

A weak presence in cloud computing is "Apple's big failing," though, McNamee said. He thinks Apple should use its iCloud service as a way to build its audience outside of its own ecosystem, something rivals Google and Microsoft have been adept at.

Read MoreCramer slices into Apple earnings

"I think Apple's magic will work in the cloud as well as it's worked anywhere else," he said.

Despite his disapproval of Apple's strategy for cloud computing, McNamee said it really doesn't affect its stock, which he thinks is cheap and boosted by the company's recently announced agreement with IBM.

Read MoreApple, IBM agree to massive enterprise hardware, software partnership

"The cash flow and the dividend and all the other value elements are so attractive that essentially growth is an option on this security," he said. "And I don't worry about the product cycles the way I would in a Facebook, or an Amazon or somebody where the valuation isn't so low."

—By CNBC's Drew Sandholm.

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