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How Much Does Google Really Make From Android?

Mike Vincent May 15, 2012 0

Android standing next to sack of cash

Google calls “Android” the future of the company. And ever since Android’s recent domination over iPhone, it has just released the current claim of android activations which is 700,000 per day, in other words, 255.5 million a year. Based on that, it has 200,000 devices activated each day making a revenue of $1.4 billion. So at Android’s current rate, it could represent around 13 percent of Google’s total revenue!

The quarterly results, for the first quarter of the year, by Google states it made $10.6 billion in January, February, and March this year with 24% up from the same time last year, but it is still only a1% increase since the last quarter. Although Google likes to keep the Android revenues cleverly hidden, it is not impossible to determine the totals made by Google from android, since this OS churns out up to 4 times more revenue than competitors.

This news comes from a damage offer made by Google to Oracle over charges of infringement by Android upon various Javascript patents and copyrights, after Oracle bought the Sun Microsystems for $7.3bn in 2010. The Guardian clarifies:

“In a pre-trial settlement offer, Google proposed that it would pay Oracle a percentage of revenues from Android, suggesting it would pay $2.8m in damages on the two remaining patents that Oracle is asserting for the period to 2011, and then 0.5% of ongoing Android revenue on one patent which expires this December, and 0.015% on another which expires in April 2018.”

This $2.8m, at a combined rate of 0.515% suggests that Android’s total revenue from the launch of handsets at the end of 2008 through the end of 2011 was $543m. And not to mention, when you pick up the tab for a new app to manage your phone numbers or play games on your android. Google gets a slice of the cake with its 30% cut from app sales to android devices. This figure also suggests that Android could generate more than $1billion in advertising revenues this year alone.

This said, the Chief executive of Google, Larry Page mentions during an October earnings call that Google was “seeing a huge positive revenue impact from mobile, which has grown 2.5 times in the last 12 months to a run rate of over $2.5bn.” It is quite obvious because to achieve an android “certification”, manufacturers have to include services such as Google search, Maps, YouTube, and other functions.

NOTE: Mike Vintent is a guest blogger for LTG. The opinions, representations and statements made within this guest article are those of the author and not of the LazyTechGuys. Any copyright remains with the author and any issues of infringement also remain with them. The company accepts no liability for inaccuracy of the article, nor any breaches of intellectual property rights.