March 29, 2012
Google finds itself in an embarrassing, yet profitable position. From 2008 to 2011, the technology giant made $543 million on Android, its mobile platform. However, the company made four times this amount with Apple products that use Google services like Search and Maps, according to The Guardian (via 9to5Mac). This news came to light as Oracle battles Google in court over what it believes are Java-related patent infringements made by Android. Oracle acquired the intellectual property in question when it bought Sun Microsystems in 2010. A pre-trial settlement offer made by Google was deemed too low by Oracle, and hence the reason financial numbers are now coming to light. According to the report:
Google also gets a 30% cut from app sales to Android devices. Google said the damages figures matched what had been calculated by a court-appointed expert. The offer does not mean Google accepts that it has infringed the patents claimed by Oracle. The $2.8m offer, at a combined rate of 0.515%, suggests that Android’s total revenue from the launch of handsets at the end of 2008 through to the end of 2011 was $543m. That also means that Android could generate more than $1bn in advertising revenues this year; last year, Google’s total annual revenues were around $38bn.In 2011, Google CEO Larry Page commented that his company’s revenue impact from mobile grew “2.5 times in the last 12 months to a run rate of over $2.5 billion.” This number represents more than just Android revenue. Since the first iPhone arrived in 2007, Apple’s iOS devices have carried Google Maps and Search. During that time, Apple sold 315 million iOS devices. This compares to 850,000 Android devices being activated each day, with Google earning roughly $10 per handset each year. As 9to5Mac contends, "the math, coupled with Page’s comments, equate to Google pulling in more advertising revenue from iOS devices than Android devices." Pretty interesting stuff, don't you think?