Friday, March 30, 2012

iMore - The #1 iPhone, iPad, and iPod touch blog: Google earns 4 times as much from iOS as they do from Android

iMore - The #1 iPhone, iPad, and iPod touch blog
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Google earns 4 times as much from iOS as they do from Android
Mar 31st 2012, 01:24

Google earns 4 times as much from iOS as they do from Android

Court documents related to the ongoing Oracle vs. Google patent lawsuit has put some numbers to a long held assumption — that Google earns far more from Apple's iOS than they do from their own Android platform. According to The Guardian, since 2008 Google has only earned $550 million from Android, or roughly $10 per device per year. (Since Google gives away Android licenses for free, that money likely comes from advertising related to search and other services).

By contrast, Google is estimated to earn $30 per PC per year. What's more, Google CEO Larry Page recently claimed revenue from mobile was now running at $2.5 billion. So $2.5 billion minus $0.55 billion leaves roughly $2 billion on the table. Where does it come from?

The figures also suggest that Apple devices such as the iPhone, which use products such as its Maps as well as Google Search in its Safari browser, generated more than four times as much revenue for Google as its own handsets in the same period.

Yowza.

Google originally fielded Android in part so that it could never be frozen out of mobile, where they and everyone else saw the future was headed at an accelerating pace. Yet fielding Android caused a schism with Apple, so much so that the late Steve Jobs vowed "thermonuclear war" to stop what he considered to be "stolen property". It also gave the carriers a powerful OS to do with what they will (and if we can agree on anything, it's that the carriers are more "evil" than Apple and Google squared).

Now, four years later, despite attacking Apple as being the enemy of openness, despite giving control of the user experience back to carriers, despite creating an uncertain update and compatibility environment for a growing segment of the smartphone market, they remain the default search and map engine on iOS, and iOS remains Google's most valuable mobile platform. By far.

Money isn't everything, of course, but it is supposed the be the goal of a for-profit company like Google. So if there's no money, and no end-user benefit (thanks to the carriers), maybe it's time for Google to re-evaluate both their relationship with Apple and/or their responsibility to end-users?

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