Monday, April 02, 2012

Google Makes Billions From iPhone and Only Millions from Android

Given Google derives the majority of its mobile revenues from iOS, ironical they should so battle it out so aggressively with Apple and risk the entire Apple cart!


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Excerpts -

Matthew Panzarino, TheNextWeb
March 29, 2011


Google has made some $550m from Android since 2008, according to numbers included in the recent Oracle settlement and crunched by Charles Arthur of The Guardian. By contrast, a huge amount of Google’s revenue in mobile comes from ads delivered to users of Apple’s iPhone.


Right now Google makes some $2.5B a year in revenue in mobile, most of it from mobile ads, and the search numbers mean that a large chunk of that comes from iOS devices. This means that the earnings from Android are dwarfed by the chunk of those earnings that come in via iPhone.


By some numbers, Google accounts for 97% of all mobile search queries, which is a massive, if not incredibly surprising number. But according to Google testimony, some 2/3 of that number originates on iOS devices, not Android.


Android is a huge part of the market, but it earns Google almost nothing in comparison to the money that the search giant earns on desktop search. Whether the Android business is sustainable at this point is only something that Google can answer, but so far it doesn’t seem to be paying dividends. The problem, really, is that Google can’t afford not to be in the mobile business, but it’s costing it billions in revenue to stay there.



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