Android is like “having a motor scooter at the Indianapolis 500”

Digging specifically at Android, McNamee said that it is akin to “having a motor scooter at the Indianapolis 500.”

“I watch what they have done with Android and I’m flabbergasted because their market share in units is so high but look at the profit share,” McNamee said. “Apple’s profit share is 75 or 80% because Android has been managed essentially to make it a profitless prosperity. Right now, if Google is not careful, Android will be Samsung or Samsung will be Android.”

I laughed. Hard.

  • cls

    was profit share from Android itself what Google was after? I am honestly asking out loud. Doesn’t seem like that’s what Google was going for originally, The sense I got was it was/is all about collecting users/eyeballs/data – which seems different from Apple’s goal of selling units.

    • chjode

      I think Google’s plan for Android was and still is: 1 – Create Android OS and provide it to dozens of manufacturers for free. 2 – Get as many Android devices in the hands of as many millions of people as possible. 3 – ???? 4 – Profit!

      It’s the mysterious third step that is still undetermined. I’d wager Google doesn’t even have a solid plan for what that step is or will be.

      • Tvaddic

        They are making money from Android, through ads from Google services soooo.

        • Very little. Read the article. Apple is trouncing them.

    • DanPierce

      Google’s motivation for Android was to guarantee that they will have a presence in mobile to sell their ads. The fear was that if Apple or Microsoft or someone else became dominant, they might be squeezed out. This is the same reasoning behind Apple’s iBooks. They don’t make a lot of money but it is a hedge against Amazon’s Kindle platform becoming the dominant platform.

      The problem for Google is that most of their mobile ad money has be coming from iOS. If Apple were ever to ship an iOS where Google wasn’t the default search engine or if Siri becomes good enough that you don’t even see the search engine that would really hurt their mobile ads revenue.

    • Obviously the reason to collect the is to sell it to advertisers…for profit.

  • What’s never talked about is what happens if / when Google decides that its “return” from Android development is just not worth it? If I remember correctly its iOS users as opposed to Android runned device owners, who used their iDevices to roam the web which is where Google has their ads. Or is data-mining Android users G-mail and other Google services information and content enough?

    Here’s a thought: Apple secretly forks Android and offers it to Samsung’s Android competitors or makes a subsidiary that sells an Android phone. With all its billons whats a couple of hundred of millions.


    Ya but did you laugh when Roger predicted Palm Pre was going to make iphone 4 forgettable,

  • Tvaddic

    Google positions themselves to make more money later. Like with Android, giving Google a presence mobile. YouTube allowing Google to sell ads on the worlds most popular video site And Google Fiber, putting pressure on internet providers so that they don’t screw the consumer, with data caps, high prices and such. This is why they create Google TV, this allows you to watch YouTube much more because it is directly on your TV Everything Google does, is to get people to use Google.