Is Google actually making any money from Android?

Is Google actually making any money from Android?You'd think that with Android holding a near-50% grip on the global smartphone market Google would be over the moon with how things are going.

But according to Google CEO Larry Page that isn't the case, as despite there now being a quarter of a billion Android devices out in the wild, Google isn't really making any money from them.

Because Android is open source, device manufacturers are free to use the platform as they wish, without having to pay Google a penny for the privilege.

And while Google is clearly aiming for a similar model to its search engine – where money is made by selling advertising on top of a free basic service – Page says there's still a long way to go before Android finds the right balance.

“We are in the early stages of monetization for a number of our new products, and Android is one of those,” Page revealed in announcing Google's latest quarterly earnings figures. Not that Google's struggling for cash or anything, with revenues for the three months to December coming in at over $10bn.

But tellingly, Google isn't revealing how much of that came from Android, which suggests it probably isn't a lot, especially in the light of Page's comments.

Via Android Community

Read more about: Android

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matt101101 / MOD  Jan. 22, 2012 at 13:41

Earlier in the week there was a story about Oracle working out that Google make approx. $10m a day from Android ad revenue, that's $3.65 billion a year, even if Oracle were exaggerating to make their case more valid, Google still probably make about $3 billion a year off Android.

Though that is a "small", number for a company that're turning over $10 billion per quarter. That means of the $10 billion per quarter they're turning over, using the best possible Android ad revenue figure of $3.65b per year, they're only making $910 million per quarter from Android, 9.1% of their total revenue.

So yeah, comparatively Android doesn't make Google very much money.

JanSt / MOD  Jan. 22, 2012 at 14:40

Google are the Open Source Welfare workers.
I am moved to tears :p Liars.

Treab  Jan. 22, 2012 at 16:10

tbh 9.1% for android isnt bad.. think of all the things google do... chrome.. chromebooks android google google maps etc... to become almost a tenth of its income in 3 years is a big result...

matt101101 / MOD  Jan. 22, 2012 at 16:16

9.1% of its revenue, how much of that revenue is profit is an entirely different matter.

Treab  Jan. 22, 2012 at 16:20

quite a bit surely... looking into staff costs you have R+D software programmers advertising consultants... pretty much it?


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