Silicon Valley Critic Takes a Poke at Google Android

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By Trey Thoelcke Published
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One of Silicon Valley’s most ancient and least successful critics attacked the profit model of the Google Inc.’s (NASDAQ: GOOG) Android OS. But Roger McNamee has arrived late to the debate.

Industry experts and investors have worried over how an operating system that is essential free to customers can make money. If it could, Google might be able to diversify beyond its search revenue base. Actually, Android could cost Google money, if its intellectual property is challenged, particularly by Apple Inc. (NASDAQ: AAPL) or Microsoft Corp. (NASDAQ: MSFT), each of which is on the patent warpath.

Bloomberg writes:

“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 told Bloomberg TV. “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.”

Douglas A. McIntyre

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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