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‎"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. Apple's profit share is like 75 or 80 percent 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." - Venture capitalist Roger McNamee

Do you agree with his take?
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Damn cnet has jumped on the anti android bandwagon, shit just got real bro!!! 
CNET is the gold standard of new media tech reporting.
Google is providing a free Os as an alternate to the expensive ios. Their goal is to get more people to use the Internet because they make their money from advertising. In the end, they don't care what os you're using as long as you're on the web
And hence I suspect Google keeps changing their partners for Nexus devices. To spread a little bit of happiness and to ensure they haven't got all eggs in one basket.
Right now Google is more successful than I am. I trust their vision... for now.
Who's this Roger McNamee guy?? Pretty stupid for a venture capitalist. He quite obviously doesn't understand Google's profit model. Google doesn't make money buy distributing Android but by utilizing the data of people using that system. Very classic example is Google Now. That thing virtually requests every single possible data of users it can think of. As long as users can accept that they get a great free service. Google then uses that data for targeted advertisement.

I know critics will say it's difficult to measure profit in models like this but how much profit Google made in Q3 again? If I'm not mistaken they made 2.2B in profit AFTER taking Motorola's losses into account.

Perhaps this guy is just butt hurt for Google taking away his opportunities by offering free products.

R Brath
Hmm, I'm gonna give this guy a pass simply because he has had some great foresight.
"I am no Apple fanboy"

Google is generous to a fault, and that's why they are so blessed. What goes around comes back around. I'm a die-hard Apple fan and fam, but Google wins my heart on a whole other level.
First it was iphone market share, then it was iOS market share, then it was some other statistic, then something else, now its web usage & profit share. Apple has undoubtedly made a great product, but they kill themselves by restricting it and pissing off a lot of people by suing all of their competitors. Let's not say Android is terrible. Slowly but steady every single statistic Apple loves touting over Android has fallen. Next will be web usage and tablets. Give it time. Android has gotten so much better in the last three years. Where has iOS gone. Hardly anywhere. Samsung has got the Android recipe right. Most other manufacturers in my opinion haven't. HTC lost their mojo so did Motorola, they released too many crap phones way too fast and lost consumer faith. Its not a spec war anymore and OEM's need to understand that and build a experience. Do I buy an Android phone because Apple iPhone is too expensive? No. Its because iOS is way too restrictive. I buy an Android because I want choice. Sony, LG, Samsung even Vizio are in a great position to make a seamsless experience across all gadgets a reality. Better positioned than Apple. Id like to see that happen. 
He's obviously a cnet shill paid to say crap on their program about Android. Nice try, iCnet.
When was his last hit?
He was wrong about Palm and webOS. I don't trust anything he says. 
Google makes is money in advertising not on software. If it theft money was coming from android, Google will be on top, and Apple on the buttom 
What he says makes lots of sense. That doesn't mean that Google is in any danger. Google, unlike Apple, makes money on both Android and iOS. Google is a Internet data company first and they're making money on all os. Take me as an example. I love Apple but I also love Google and their services. I gladly share my information with them through G+, Google maps, and their Internet search. 
+Shiran Salgado it's always about profit share. Companies are for making money. It took HP three computers at equal price to match Apple on one Mac. That was during Microsoft windows prime. Apple makes way more on iOS than Google makes on Android. As a matter a fact Google makes more money on iOS than they do on Android. The thing to remember is that Google makes money on data by selling it to advertisers. 
I find it quite unlikely that the majority of users buy Android based purely on being a lower cost solution. I have owned Apple products, and the bottom line is, I prefer my GS3 and wouldn't trade for an iphone 5. Will Apple release a better product than the S3? I certainly hope so. Competition breeds greatness and ingenuity. And in return, the many other companies competing to make the best Android hardware will probably keep them ahead of Apple. Just my two red cents
iPhone 5 is ten thousand times better than GS3. You can't even compare. But let's just not go into that right now. 
+tim markiewicz no he's right. The hardcore people like you choose Android because you like the freedom that it gives but a lot of people that are just getting into smartphones are going with Android just because its cheaper. Why do you think iOS dominates web usage when android has over half the market share?
Came from an iPhone 4S to an GS3- iPhone 5 can't even compare. Sorry to bust your bubble but you have a 4s with a 4 inch screen. When it comes to innovation android is the way, hence being cnet's choice for 2012
iPhone 4S is not iPhone 5, mind you.
Of course there are people buying some models for the fact that they are more affordable. However, you have that option with Android. Not every person needs the top of the line hardware. I don't want anyone to get the wrong idea about my remark, I still have respect for what Apple produces. Personally (and I'm sure I'm not alone), I prefer what my S3 has to offer. Apple has fallen into a position where they trickle features out to people, instead of giving them new things to actually offer significant jumps in hardware. I look at all the competition, and I feel the iphone 5 would be going backwards from the S3. Dominating web usage for now, but people are moving away because they are getting bored. I work for a cell company and I can tell you, there is an increasing interest in Android offerings for their hardware.
Oh yeah it has a 4 inch screen, soft scratch prone aluminum back and face time HD and iOS 6. Other than a jump from a 3.5 to 4 inch screen and a scratch prone back, what makes it different? 
And really? Ten thousand times better? That seems a bit ridiculous. I would like to see the feature list that supports that claim.
+tim markiewicz I agree with you. I'm sure it's one of the reason that Jon Ive is in charge now. iOS is getting stale and Apple knows this. 
IPhone 4s is s better value. Enjoy waiting in line for the 5S with the same screen and a non beta siri as well as maps that work. 
Wait the s3 had a bigger screen, Google now and maps, right. 
+Johnathan Her
Don't be deceived by the sentiments. iPhone 5 is the best smartphone out there generally speaking. Everything else just depends on how you use your phone and for what. 
4.8" screen. Removable battery (swap for bigger battery). NFC is awesome. Great processing power out of the dual core and 2gb of ram. SD slot. Widgets. Android OS that each manufacturer can overlay their own layout to make it their own
+Fernando Maldonado , I just want you to know I wasn't arguing your statements. I wish both companies would keep strong to keep the competition alive. That's the best thing for the consumers.
Iphone 5 is a stale remake of previous models with a bigger screen. It really does pain me to say it, but the last 2 iphones have had little to no innovations over the 4.
this guy only comments to inflame. first he trashes apple before their launch then he changes his mind when people started to forget about him.

android is google's investment into mobile (advertising). no one has sorted out how to do it well yet but that in itself is worth quite a lot.

and FYI iPhone is the phone of the herd....mooooo. it used to be cool. now my mom has one too
People always miss the point with Google. Google+ doesn't exist because they want to beat facebook, gmail doesn't exist because they want to be the #1 email client, Google Chrome doesn't exist because they want to be the #1 browser provider, none of their services/devices exist because they want to lead in said category...all of these things, including android, exist because it then makes Google's core product better, which is search. Android is just another way to get more info about people to target ads better, and it's another way to display those ads. It also doesn't hurt that they're the best in almost every market they're in. The money they make off of android is just a bonus to the money they make off ads that android helps them with.
Also, he goes on about the only reason android has a bigger install base is because of cheaper android phones...I'm almost positive the Galaxy S3 alone outsells iPhone. Not to mention the Note selling millions as well. And all the people I know that get android always get the newest one. So, no, it's not because androids are cheaper.
I cannot speak for others,  I truly love my android phone and would probably buy the same phone even if it costs more than an iphone. . Having used a iphone before I sincerely believe user experience is equal or greater than what iphone offers in almost all domains of my daily usage.. So Roger MCNamee I believe is just speaking for himself .. 
Google makes its money on their percentage of Play purchases.  Samsung makes their money on hardware and their own software tie-ins.  Apple makes their money on hype and thoughtless loyalty.
The only good Android phones are the Nexus line because they're the only ones with consistent updates and bug fixes. I have owned 2 Android phones and my family is up to like 8 total now. 7 of those 8 are stuck on 2.4 with no migration path in sight to a 4.x build. This argument towards openness is an absolute myth when a good chunk of the total marketshare is on Gingerbread or Froyo.

Innovation... Would be an Android market and services that was as good as iTunes or Amazon or Zune Market. Innovation would be software integration that makes file transfers between it and desktops less of a chore. I like Google Play's cloud services on pricing, but file management and the reliance on the cloud vs. a legit. desktop app. for Mac/PC/Linux fits what this guy is saying.

Admittedly Android is getting better... But they're still not a match for what iOS was 4 years ago. Don't kid yourself. I love aspects of the OS. I am about as big a fan of Google as I am Apple. Yet... Android is a mess that Google is reluctant to fix since the whole thing was built on pandering to carrier lock-ins, lockdowns and hardware vendor draconian controls. Don't get it twisted... Android isn't open unless you own a Nexus or Root your device. That's really no different than Jailbreaking an iPhone at that stage.

Why have I stayed with Android? My family is on a small market carrier (U.S. Cellular). They recently sold our market to Sprint so next go-round, unless some Android partner begins selling something akin to a Nexus 4 on Sprint and magically fixes all of the glaring issues of Android, I will have an iPhone. Even if I could have a Nexus 4, I'd still take an iPhone 5. I'd even consider the new Nokia WinMo8 phones in a dead heat with the Nexus. I'm not a huge Metro fan but think it works better on the phone than desktop and there are aspects I like as well as anything out there. MS is definitely doing things in a different way than ever and are one heck of an underdog at this stage but... They have the desktop software integration better than Android at this point.
I agree with the desire for improved integration. One thing you have to consider in regards to OS updates is, they aren't going to release it to devices that can't truely handle it. Remember that debacle when windows released versions (xp service pack 3) for computers with too low of requirements? The more computing power allows for improved OS performance. Unfortunately, the result is that some of the phones aren't going to be supported. I think with dual core and quad core handsets, there is a better chance for continued support.
+tim markiewicz isn't it the point to argue our thoughts, opinion, and ideas? It's what I love about G+ and why I think it's better than Facebook. People like use can have intelligent conversations about what we love. In this case tech companies and their services. 
+Nathaniel Miller and here I thought Apple made its money from its belief to marry hardware and software together from one maker. I guess some cone from the App Store and iTunes. Oh and bringing mobile os to the mainstream. God know blackberry or palm wasn't going to do it. 
Wow, McNamee really comes off really ignorantly. While the iPhone is a fine product, he makes it sound as if it were the God of smartphones. Being in the market looking for a new smartphone to replace my Droid X and looking over all the new phones being offered now, saying one is significantly better than the rest is just ludicrous. Trying to decide on a phone has been an awful headache due to people like McNamee who want to praise one phone over all the others. What I've had to conclude instead is that there are a number of really good choices, and at this time it's really just going to come down to the individual deciding what's most important for them in a phone. Be it an iPhone, an Android, phone, or otherwise, I think it'd be hard to go wrong if you just pick a phone that has what you care most about. Maybe in another year or so someone will release a phone that outdoes all the others at everything, but that seems unlikely.

I'd also like to throw in my two cents about Android loyalty and cost. I do see an interesting parallel between the Apple vs Google race and the Apple vs Microsoft race. Even if there are people who are going with Android just because they can get the phone for cheap or free, if they keep it for a couple of years there are bound to be some who decide to stick with Android because that's what's familiar for them, just like a lot of Windows users stick with Windows because it's what they know. I know the first time I used a Mac I had a bit of trouble figuring my way around the OS, mostly because I had become accustomed to Windows. If you get used to something and it does what you want, there are plenty of people who will be loyal to an OS so long as there aren't enough advantages for them to switch.
So basically google doesn't want to be the next Apple in profits anyway, then wats the point In having a business might as well give every thing away for free, so google I will need a nexus 4 and 7
At first glance, I thought that was a woman. 
I don´t agree... the fact that its free is also the reason Android´s market share is so high. 

I do often like what he says in conferences... but he is always a big Apple fan, and a couple of years ago he predicted Apple to almost rule the world and that Google was on its way down. I believe this to be a very smart man with a very logical way of thinking.

I think he now needs to reconsider.
Google has positioned themselves in such a way that in 5 years they will have enough money to purchase any continent they choose. South America sounds good.
Its quite surprising that it was Apple saying in the media all the time they don´t care about money, while Google is the one providing their OS for free...
Lots of comments. Bottom line: Google wins and Android wins.
Whoever wins, the readers or commenters wont get a pie out of either of the companies. 
This guy's a tool.  The majority of computers and devices in the world run a free operating system called Linux.

Why shouldn't smart phones?
And this is why venture capitalists mostly venture into startups, whereas Google with it's more complicated ecosystem style business model is not a startup any more. Further, there's this thing called Google Ventures that I imagine competes with what this guy does.
Did Apple think their monopoly was going to last. Why is Apple's buddies using $29 vc words to ask why andriod customers buy andriod products apple should work on making a better interchangeable product. He seems like an "Apple fan boy" whatever that may be. I don't enjoy the one Apple product i hv so i work around it. Doesn't he hv hair product to invest in.
Google probably wish profits and marketshare would be more equally spread among OEMs, but Samsung have higher margin because they make the components themselves, and it's a free market, Google can't control these things.
Google is making tons of money.  So much in fact that they're hiding billions of it in tax free overseas shelters.  No worries.
Apple has stopped being the pioneer since Steve Jobs passed away.  I bought the original iPhone, since it was better and more advance than anything else on the market at the time.  But why would I want the iP5 now, since it's basically just an iP4S with a little bigger screen, and a new connector to rip me off more?  I just got the Nexus 4 delivered.   I'm away from home now, but can't wait to open it when I got back.
The note 2 is the best phone you can get at the moment. Not the gs3 or iPhone 5. The only category the iPhone still dominates is build quality. That's it.
Logic is completely non-existent in this article...
Sounds like Roger is backing a different horse in the race.  Any time a "venture capitalist" opens his mouth to praise or disparage a company, you have to suspect ulterior motives.

Google knows:  If you want into a market that is dominated by one or a few brands, you have to make people want your brand.  One way to differentiate your brand and make it desirable is to make it cost less - both-or-either in initial cost or cost of ownership.
So let me get this straight ... he's mad at Google because he thinks they should have made a boat load of money off of Android by charging everyone for it.

Doesn't he realize that one of the reasons that Android got so popular because it DIDN'T cost a boat load of money?

Then again, a venture capitalist complaining about not making money off of something, is sort of like a lawyer complaining there aren't enough laws.
It's another one of those "This company is successful doing X, company Y should be doing it too!"  It's too simplistic.  For example, Costco and Walmart, on the surface look to be doing similar things, but their business models are vastly different, and as such - their profits margins, salary structure, etc. are vastly different.
+Adel Alsbeehi The note 2 is a better phone. Not talking sales. I Dont even like calling the note a phone , it really is the closest thing to an ultra portable computer. Its great for creating and consuming content. Awesome device. I owned one for about a month then gave it to my wife only because I really wanna give the nexus 4 a shot. Patiently waiting for 16 gb to ship.
How does this idiot keep getting airtime? dunno who is more stupid between mcnamee or scoble lol 
+tim markiewicz But doesn't that sound incredibly fishy when Apple can support 2-3 generation/year old hardware with system updates that improve the phone and add features and Android handset makers deprecate system upgrade support for hardware that ships... This year?!? Sorry... Not buying it on the hardware front. The inefficiency in code and the length of time it takes vendors to port/update their phone skins (waste) is the bigger issues. Samsung and HTC have notoriously dragged with updates. If the UI is good enough, and at this stage I believe it is, it shouldn't require skins. If the makers want them though... Then Google should provide a UI toolkit and theme switcher that separates the chrome from the content and functionality. Not to mention half the time the skin UX is confounded by inconsistency that Vanilla Android lacks. Some form of UI toolkit and theme module files (think Windowblinds or Shapeshifter/Kaleidoscope from Mac/PC) could fix this. I'd rather see that than the tap to share that was raped from WebOS. ;)

Apple and the Nexus' are the only phones with decent support because the software vendor takes pride in improving the breed and continuously does so. You get your money's worth with the Nexus'. Your carriers and handset vendors only care about getting you to buy in, walk out of the store and support the system in the bare minimum. That's just fact. They cram things full of bloatware getting kickbacks from the software vendors who are locked in which helps pay for the phone. The rest is paid via the contracts and phone sales, point of sale accessories per phone, and the corner cutting and skimping on specs. Sure Android 4.x supposedly eliminates the software lockdowns, but it doesn't guarantee regular software updates or bug fixes. That is up to the handset makers and carriers and few really seem to bother.

Sure you can root... But just like many argue you shouldn't have to jailbreak, neither should you have to root. It goes both ways.

Besides... Project butter was about improving the efficiencies in Android. If MS could update WinMo 7 and make it snappy on older, less spec'ed hardware (many handsets were on older hardware with more locked down specs, but it was still snappier than many faster, dual-core Gingerbread phones), how did Android partners fail leaving a majority left on older hardware with less performance? Innovation... Pffft... Bollocks. LoL

Cyanogen Mod runs better on many handsets better than the stock ROM's that came with the handset (wished I could run it but being on a smaller carrier with an exclusive phone, not happening... Even if similar spec hardware on AT&T and Verizon and others can run it!), many of which that ran Gingerbread fwiw. iOS devices out of the box are hardly ever laggy and Apple addresses issues if they arise. Comparing both my Merge and Aviator... They were sluggish out of the box and crammed full of bloatware that you can't remove. Open? Innovative?!? More like selling out to the man vs. having the balls to stand up to the carriers.

Rather than flooding the markets with 20 variations on the same design (often with less RAM than it should have and enough bloatware apps. with services runnung in the background))... Why not put the effort into making a perfect handset that is innovative, polished, well spec'ed, and designed to work on multiple carriers (Hrm... Like Apple, Galaxy S III is close assuming Samsung stays on top of it vs. getting sidetracked playing to the phone of the month club) and actually fight to make it devoid of bloat and crap and put a greater emphasis on making sure that the phone grows with you over the term of the contract vs. being shoved out the door, orphaned with no updates or software progress, arcane system updates, crappy Adobe Air sync apps, no desktop integration out of the box and no bug fixes.

I have to pull the battery at least 4x's a week on the Aviator because it hangs. There's been 2 software updates (both requiring kludgy finger dexterity theatrics... better than the Merge I suppose which required a backup, wipe and reinstall pushed through from an AIR app.)) and neither have fixed it. My Dad, same phone... Similar problem. Happens half as often, but he uses it half as much.
I think the biggest aspect that people don't account for is the experience itself. I know you can buy an android phone with 8gb of ram and a 11 inch 4k resolution screen, but the interface itself is so disorganized and cluttered compared to iOS. You really can't go wrong with the experience aspect that apple offers. All of their systems operate typically flawlessly in an aesthetically pleasing manner, and that to me is more important than anything when developing a consumer product. 
+Andrew Lupo you're absolutely right about user experience but the "disorganization and cluttered " part really isn't an issue in android anymore. Yes there still is some instability issues but they are very minimal. I say you gotta try a note 2 it really is great. Its damn near as good as the iPhone when it comes to stability n smoothness. And the multi tasking on that thing is AWESOME!
An android device may be "disorganized and cluttered."  That is more of a reflection of the user than the system.  My wife's android's are just a mess - but she's happy with it.
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