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If you break down the math as it stands, Android is a rather profitable enterprise for Google with a per user revenue of about $5.900 based on advertising. Analyst Gene Munster of Piper Jaffray believes that by 2012 the number could increase to $9.85 per user. He projects Android will have 133 million users by that time. If you do the math, it works out to a cool $1.3 billion in the coffers of Google. Munster adds that the number could be boosted even higher thanks to in-app advertising via the Android Market.
You’ll remember Eric Schmidt last summer spoke about Android becoming a $10 billion business through advertising alone. Schmidt pointed to the $10 per user figure, but his numbers require one billion Android users, a figure that seems a bit out of reach at the current time. Still, Google will definitely rake it in over the next few years thanks to their investment in the mobile OS.
[via Forbes]
1st
And wow. Heck of a number, billion.
Consumer love free… ads allow more free apps and services… Google is going to change the landscape for the better and consumers will be the benefit NOT appel’s ruthless business practices, pricing and limited products and services!
Anyone see the Engadget Show podcast with Steve Wozniak? I’m not an Apple fanboy, but you gotta love this guy…he’s pretty entertaining. Anyway, he carries around a Droid X with his iPhones. He’s also has a Nexus 1 and has/does own(ed) a Palm Pre and Blackberry devices. He likes Android and says that it is very good and good competition for Apple. Give it a watch, you won’t be disappointed:
http://www.engadget.com/2011/01/30/the-engadget-show-live-with-steve-wozniak/
I think they’ll reach 1 billion from it this year. All research companies’ predictions so far have underestimated Android’s growth – like Gartner saying Android will be #2 OS globally with 29% market share by the end of 2014, and it reached it by the end of 2010. In case someone is wondering “didn’t they already announce they make 1 billion from mobile ads?” – that was total mobile ads from Admob, which works on all platforms, including iOS. So they’re making at least 1-2 other billions from other platforms.
@riz Everyone is in business for money. Google is no exception here and if you think they are doing it to improve our lifestyle and place consumers interest before Google’s. You are grossly mistaken. Google, Microsoft, Apple everyone’s model may be different but they are all in business for one single reason. Make Moolah!
@Riz, I agree with whoisworst. The purpose of a company is to make profits and it’s the same reason you go to work. Do you work for free or pay somebody to do work for them? No, you work for a profit too….so stop being hypocritical. Without a profit, companies can’t invest in new people, R&D, and just keep innovating. I don’t get why so many people think profits are a bad thing…they are a good thing. They keep people working and companies like Apple, Microsoft, Google, etc. produce things that make our lives better. “Apple’s ruthless business practices”?….really? They are just ruthless competitors and so is Google. Apple is just good at what they do and people like their products. Same can be said of Google, Microsoft and others. If you don’t like profits and then don’t buy anything…you have a choice. Viva la Android!
Ads are like viruses , invading private space without a invite , this is my phone I choose to not see stupid ads on it , I see it a invasion of privacy , I did not ask for them , there is nothing in my contract that would allow them by purchasing the phone .
SO STOP USING MY PHONE AS A SALES AVENUE !!!!!!!!!!!!!!!!!!
War against ads ! Stop wasting my time with thing I don’t want !
You pay for TV service , how come there are still ads , I pay for phone service , there are still ads , ad mentality is sicking , even if you pay for things they still stick ads on them , so free or paid doesn’t matter , stand up tell the ad people enough is enough .
don’t like ads on android? Install one of the various ad blockers… problem solved. Ads provide revenue. Revenue provides progress. Minor inconvenience for so much innovation on an open source platform.
Google will still make a little money out of Android. Only (I guess) 30% of the billion will go to Google. 300 milion is not much, they probably put more money than that into Android every year. However, I think that Android is definitely good for Google from a strategy / long term prespective. The more Androids are there, the less money goes to Apple ;-)
Ads are a necessary evil. No way around it, really. There’s no such thing as a free lunch.
@no ads
Where is the revenue going to come from then if you got rid of ads on TV, phone apps, and websites? These medias aren’t created solely so we can use and enjoy them. These are created to make money and support people’s livlihoods. I don’t know you but you seem to think you’re entitled access to things that takes revenue to keep them going. If you took ads off of TV, then your cable bill would be 2-3 times what it is now…maybe even more. You want that?
@whoisworst, Sputnick… Obviously companies are in it to make money… I SIMPLY PREFER HOW GOOGLE chooses to make their money, NOT directly from me. I use a ton of google services and do not pay them a dime. In contrast, Appel charges $500-800 for an iPad when its reported to be worth a couple hundred in it’s very limited and low tech product http://gearmedia.ign.com/gear/image/article/106/1068348/isuppli_01_1265839608.jpg and that was a year ago and still no drop in price but sure manufacturing costs have easily gone down for apple. So, the way I look at it, google takes pennies from ads, pennies from advertisers and I don’t pay them anything. Call me crazy BUT i think that is a company worth backing. Apple, hmmm, not sooo much (IMO), 3 products have vaulted them into stardom this past 10 years, 3 products that are basically the same product in 3 diff configs. IMO Android and Google are the company to beat. Yes IMO
Android rules because it free. All apps are free by having ads. Those who don’t like ads can install adblocker like me. The apps that are paid for can downloaded free anyway by many ways. This is why Android rocks and crApple sux big time. Go android world!
@3 Woz is so cool, he just loves technology. I also like to try out multiple devices but stock Android has always been my favorite, since when the G1 came out.
@riz
Fair enough…that’s what choice is all about. I wouldn’t consider Apple ruthless because they don’t force you into anything…you don’t have to buy their products. I get that you don’t like their business model….and frankly I don’t either….iTunes is terrible. But I wouldn’t call Apple ruthless, I think that’s a little extreme. Apple is just highly successful and price competitive actually. Take a high end tablet or phone from HTC, Moto or whoever and stack it up against Apple’s non-contract prices…they are competitive. People spend the money for their products and people are happy with them and they feel it’s worth it….it’s their choice to make, but not Apple’s fault. Peace.