“Android revenues are a closely guarded secret, but it seems that a court filing has finally revealed them and there’s nothing to brag about. Google seems to have a sustainable business with Android as long as it can keep the exponential growth of the platform but it reaps little revenue, and actually it gets much more from iOS handsets,” Victor H. reports for phoneArena.
“The Guardian’s Charles Arthur suggests that if we subtract Android from the overall mobile income, we’d arrive at Google’s revenue from iOS. And the results are eye-opening – iOS brings 4 to 5 times more revenue to Google than Android,” Victor H. reports. “In 2011 alone, iOS brought five times more revenue than Android. iOS brought $8.33 in revenue to the search behemoth, while Android cashed in $1.70.”
Victor H. reports, “And if we take an average 2-year lifespan for an Android device, we’d see that Google makes around $3.50 from it. Apple – in stark contrast – has $576.3 for each iOS device sold in 2011.”
Read more in the full article here.
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Google’s Android has generated just $550 million since 2008, but billions from Apple iPhone, figures suggest – March 30, 2012
With 8.7% market share, Apple reaps 75% of mobile phone profits – February 3, 2012
Yum Yum, that market share tastes really good doesn’t it Google.
Apple, as only it seems to know how to do, has effectively cornered the market for PAYING customers.
Ok, let’s see what happens here…
Android fans feel perfectly justified in comparing Apple’s iPhone offerings — 3 phones from ONE company — to the market-share performance of the entire Android phone industry.
Let’s see how long it takes for them to cry “foul” when we talk about the revenues of the two systems — “It’s not a fair comparison, Apple is a hardware company!!”
Let’s see. If those Android phones had never existed, and twice as many iPhones had been sold, wouldn’t Google have made a boatload of additional money and reduced their A-hole footprint? Don’t be evil, Google.
Biting the hand that feeds. Wait ’til the hand bites back. You know Apple’s developing their own search engine (that’s where $100b comes in handy). When they pull that switch on their iOS devices, it’s going to be thermonuclear baby.
From your lips to Gawd’s ears, billy!
Don’t forget, Google has a 12billion $ hole to crawl out of too, with their purchase of patent troll Moto.
Google makes 5x the revenues from iOS than it does from its own Android devices….TODAY. Fast forward to the near future….
Apple will replace Google services like maps, likely in next OS update.
Apple just increased the share of Ad profits to websites using iAds which should incrementally begin to drain advertising revenues from Google. 5x will be a thing of the past.
As has been said repeatedly, Google will rue the day it decided to compete with Apple, rather than partner with it. The gravy train will continue to dry up for them, one drop at a time.
Bingo.
and once it starts IMO, its going to happen fast.
But, but Google makes about $15 on every iPhone every year it’s in use.
For how much longer, given their once cozy partnerlike relationship with Apple is now forever broken?
The $576 Apple makes is probably gross- the net will be a LOT less, but still substantially more than Google’s take on its Android devices (even if Google’s $3.50 is all profit because they’re not actually manufacturing anything).
… picture. 90% of Apple’s gross revenue is whittled away in costs while less than 10% of Google’s goes that route. And Google’s market is half again the iPhone market!
Why … Apple is Netting a mere 10x what Google Nets! Umm … from phones. Then there’s the Tablets. Google doesn’t want to talk about the Tablets. Different story, there. Apples and oranges. Yup.
In essence, the article posits an overly rosy picture of Apple’s earnings. Earnings that NEED no buffing because they are pretty buff to start with.
So when do apple’s map agreements run out with google? Will apple slowly let google wither on the vine, or crush them in 1 knockout punch? The usual apple MO from what I’ve seen is for them to string a company along until it makes no more sense to deal with them, then not return phone calls… I have a feeling Google won’t be getting their calls returned in the near future…
Brilliant post and possibly prophetic. I have a strong feeling about the maps being replaced. Dunno about search but who knows? Apple has to have something up it’s sleeve there. We will know when the next iOS gets released, sometime between now and June I suspect.
Google is killing their own mapping business off by charging for map loads above 25,000 per day. This is not a big deal for a company like Apple but for small developers it could be a train wreck.
I think its great that Apple appears to be shifting to Open Street Maps. Why build yet another version of mapping software when Apple can just connect up with a free and growing one that benefits everyone?
I think in time Open Street Maps will end up being the premier mapping solution out there and it is not owned by Google or MS. I love it
Bad Dog! I mean Bad Google! Even a dog knows better than to bite the hand that feeds it. It shouldn’t be long now till Apple is ready to rid itself of all Google products and services on iOS devices.
Google will rue the day they decide to work against Apple instead of with them.
Something’s not right here. Maybe Google’s subtracting development costs, but if it’s really all Google makes from each Android handset, then a couple of wins by Apple on patents and subsequent imposition of licensing fees will quickly move Google’s profit to a loss.
Google monitized your activity not your handset purchase.
So AAPL is just mispriced and the market has too much underestimated it .
Ha!
Andy Rubin, raising his pinky to the corner of his mouth in his best imitation of Dr. Evil, most recently spouted that Google is now “activating” 850,000 Android devices per day. C’mon, Andy–let’s just make it a million a day. Or a milllion kajillion billion. After all, no one can check up on your number and it’s clearly meaningless anyway…
I guess Andy is extra proud that 845,000 of those phones”activated” daily are used as nothing more than dumb feature phones.
What’s particularly hilarious about this is that they are openly admitting to ripping you off, and you treat it like the messiah has come.