We recently published information that Google did not even mention Android revenue in its financial report. This allowed analysts to conclude that she has no success in this area. This news caused criticism from the readers of the App2Top portal, so we offer more specific calculations and a different point of view. How much does Google really earn in the mobile sphere?
If you listen to some arguments about Google, you might think that Android is a gratuitous gift to the world and that the company receives nothing in return, except the endless love and appreciation of users.
But Android is one of the key components in Google’s plans to make a lot of money, and in the coming years, due to the growth in the number of mobile devices and the growth in the consumption of services, its importance will only increase.
At the moment, about 190 million Android-based mobile devices are activated in the world. This is a lot, but the figure of $2,500,000,000 that mobile users bring to Google annually is much more attractive. Over the past 12 months, this figure has increased 2.5 times. If the dynamics continue, the revenue will reach $5 billion in the next 12 months.
How did Google achieve such results? Due to what he does best – through advertising. Google does not need its own devices to broadcast ads: advertising works on any device that runs on Android.
While Google does not charge for using the Android operating system, app revenue is divided as follows: 70% goes to developers, 30% is divided between operators and payment systems. But Android is a great way to escort users to Google products, that is, to where ads are broadcast.
It’s interesting to see how three different companies make money in the mobile sphere. Google is interested in revenue from views and clicks, Apple is interested in selling devices with a large profit, and Microsoft earns money by selling licenses.