“Despite announcing a 33 percent sequential quarterly increase in revenues and promoting its Google+ competitor to Facebook, Google’s detailed financial results for Q3 2011 made almost no mention of Android, indicating how little revenue the project actually generates,” Daniel Eran Dilger reports for AppleInsider.
“Google’s $9.72 billion in revenues were generated largely by the company’s own web sites, which reported revenues of $6.74 billion, or 69 percent of its income,” Dilger reports. “‘Network revenues,’ generated through affiliate partners through Google’s AdSense programs, contributed $2.6 billion, or 27 percent of the total. Other income outside of Google.com and AdSense advertising amounted to $385 million.”
Dilger reports, “Nowhere in its quarterly earnings report does Google even mention Android or use the word ‘mobile.'”
Much more in the full article here.
That kind of makes sense, though. Doesn’t Google do everything they do so everyone will click on more ads? That’s where the lion’s share of their revenue comes from, if I understand their business model correctly. Android is just another “feeder” into that plan.
No, it could be their future. In a Jobsian vision, we are now living in a post-PC world order; the traditional computing is about to be relegated to trucks for our minds. Going after a mobile business in the most cavalier fashion (patent infringement be damned, grab the mindshare fast) and after blowing 13+ billion dollars on patents last quarter alone, I’d think Google is ready to bet the firm on that Jobsian vision thingy.
Yes, but you would think that they would break down the mobile revenues derived from their Android ecosystem, what with Page spouting off about how Android is “unstoppable.”
I bet Android is a fairly high investment with a very high profile but with very low actual returns.
If the Kindle Fire is successful, the Android ecosystem will be completely splintered.
Google is not interested in earning any money on Android. It’s their channel for collecting user mobile behavior and eye-balls. Apple is in the process of cutting them out, bit by bit – e.g. Siri replacing Google search.
Google is in the business of selling user profiles to advertisers, not in creating compelling, revenue generating products and services to consumers.
They probably don’t want to report any income attributable to Android, for fear that Android OEMs might ask Google to cover their IP costs, since they now are paying Microsoft for Google’s IP infringement.
If you were to compare revenue breakdowns, Apple derives 70% of its income from iOS devices and Google 70% from online advertisement driven searches on the desktop. In both camps there’s over dependence on one segment of the business. Based on this division, Macs are almost a footnote in Apple’s revenue stream. It’s no wonder the Mac Pro is treated like a red headed stepchild, probably going the way of the Xserve.
Yeah, WalMart derives all of its income from retail. There’s over dependence on one segment of the business.
Android is the best thing that happened to Apple (seriously). It got the world to ‘choose’ a phone (Android vs iPhone vs Win) rather than receiving the default Win 6 Phone. Now people are ‘choosing’ iPhone 4.
Yeah, when Google announced Android, they were very upfront about its business strategy. It’s only strategic value to Google is to give more people access to the web, which indirectly increases their web advertising revenue.
Seems like if share holders want to see a company make money, they would question a huge gaping hole in the revenue stream. Wouldn’t be a big deal except for the fact that the Android code is so popular.. cough cough- hurt to say that.
So, I wonder if Googles share holders would be better off without the “free” Android being given away and instead have the Google employees work on something else? The world will never know.
I would think that Android just contributes to the main search revenue.
they don’t sell it, they don’t charge any fees to use it.
Really its just a big data feed into their system that helps keep them relevant and helps ensure people are using Google search and other services.
And now for something completely different:
IRS is now investigating Google.
http://www.businessweek.com/news/2011-10-13/irs-auditing-how-google-shifted-profits-offshore-to-avoid-taxes.html
Hiding profits from Larry Ellison perhaps??
Revenues and “earnings” aren’t the same. The headline made it sound like Google is “earning” (net profits) as much as Exxon per quarter. Google’s actual earnings were $2.73 billion or a little over 25% of their revenues.