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iOS devices bring Apple $576.3, Androids cash in only $3.5 to Google

iOS devices bring Apple $576.3, Androids cash in only $3.5 to Google
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. Here's the maths behind this conclusion. 

It all stems from a recently held judicial hearing where Google ceded to pay Oracle $2.8 million and 0.515% of Android revenues on an ongoing basis. If Google agreed to pay 0.515% of Android revenues, it only makes sense that $2.8 million is actually a cumulative 0.515% of all Android revenue so far, from 2008 to 2011. Basic math shows that total Android platform revenues stand at $544 million from 2008 to 2011.

Now, obviously revenue is scattered differently across those four years, so we’d need to look at Android’s exponential growth and the overall installed base. Again, it’s logical to assume that as install based grew, so did the revenue. Luckily, all of those stats are available and neatly compiled in graphs by Horace Dediu of Asymco.

iOS devices bring Apple $576.3, Androids cash in only $3.5 to Google
iOS devices bring Apple $576.3, Androids cash in only $3.5 to Google
All of this comes with another important assumption and that is revenue per device. It could have changed upwards, or downwards, but for the sake of simplicity, it’s assumed that it remained stable throughout the years.

With this in mind, we arrive at Google revenue per handset per year of merely $1.70.

Does the figure make sense? Google actually revealed “mobile run rate” of $2.5 billion in October 2011. And mobile here includes everything - iOS, Symbian and others where Google services are present. Again, if we interpolate the Android revenue data we arrived at to the overall “mobile run rate” of $2.5 billion, we’d see clearly that Android is only a fraction of Google’s mobile income.

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 (again, with all those assumptions in mind).

iOS devices bring Apple $576.3, Androids cash in only $3.5 to Google
iOS devices bring Apple $576.3, Androids cash in only $3.5 to Google
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.

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. The numbers speak for themselves, don't they?


57 Comments
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posted on 03 Apr 2012, 03:16 6

1. drahmad (Posts: 478; Member since: 20 Aug 2011)


google is crazy.

posted on 03 Apr 2012, 18:54 3

50. Lucas777 (Posts: 2121; Member since: 06 Jan 2011)


yes and no... if they have the money to support android, this solution is fantastic because it pushes google to everything... but if they do not have the money to support it then no... the probem is apple is moving away from google services, but i think it will be fine... if microsoft apple, oracle, nokia, and various others keep taking a part of the pie, google might need to charge licenses for their os...

posted on 03 Apr 2012, 03:36 18

2. andro. (Posts: 1936; Member since: 16 Sep 2011)


Android is fundamentally a open source free platform for everyone and therefore its not a way for google specifically to make billions on. Apple model on the other hand is a tight restrictive,massively locked down total control system and money gouging happens to the maximum potential,usually at ifans expense so all in all these figure are as expected.

Googles revenues come from so many different aspects of its total business as well as ios as PA documented here before that google is getting money from each ios device sale.

posted on 03 Apr 2012, 08:56 5

27. darkkjedii (Posts: 10354; Member since: 05 Feb 2011)


Yeah yeah yeah androsheep

posted on 03 Apr 2012, 09:11 5

29. darkkjedii (Posts: 10354; Member since: 05 Feb 2011)


Hey andro I heard google was on the grassy noll. You'll still defend them though.

posted on 03 Apr 2012, 16:59 5

49. andro. (Posts: 1936; Member since: 16 Sep 2011)


Your childish rants are hilarious!! Haha!!!!

posted on 03 Apr 2012, 10:02 3

32. veggiedude (Posts: 1; Member since: 03 Apr 2012)


Nope. It is based on two open source free platforms - Linux and Java - but Google has stolen Java and right now are defending their actions in court against Oracle. Android doesn't even play nice by the rules of Linux open source community. Android's days may be numbered.

posted on 03 Apr 2012, 03:53 5

3. strikercho (banned) (Posts: 156; Member since: 20 Mar 2012)


Basically Giggle way is to make money out of everuthing possible. They're good at only one thing - their search engine. The only use of Handroid as an ''open-source'' is to make Handroid fans look at the commercials. If one day Handroid's popularity decreases, I am 90% sure that they will immediately abandon it. And move to the next thing that can bring them cash - like strip bars, if necessary. :)

posted on 03 Apr 2012, 04:00 10

4. Whateverman (Posts: 3187; Member since: 17 May 2009)


Apparently Google is good at making an OS that makes fans of other OSs green with envy as well.

posted on 03 Apr 2012, 05:43 12

18. _PHug_ (Posts: 380; Member since: 11 Oct 2011)


Wait, was "giggle" and "handroid" supposed to be funny or comical?

It wasn't.

It wasn't even remotely clever.

If your friends encouraged you to use those phrases they aren't your friends, they just laugh at you behind your back.

posted on 03 Apr 2012, 04:01 3

5. gauravbh1 (Posts: 10; Member since: 03 Apr 2012)


Did somebody say the Android is a open source platform. It is but it is the least open of the open source platforms. That obviously doesn't help.http://arstechnica.com/open-source/news/2011/08/study-android-is-least-open-of-open-source-mobile-platforms.ars

posted on 03 Apr 2012, 04:04 7

6. Whateverman (Posts: 3187; Member since: 17 May 2009)


What I got from this article is Google still made $544M from an OS they give away to everyone for free! Good job Google!

posted on 03 Apr 2012, 04:06 8

7. donzere (Posts: 12; Member since: 10 Jun 2010)


Do y'all know why apple is the KING: because they give you a badass software and a sick hardware to accompnay it. That's why neither google, samsung, htc etc can't compete lmao. And yes i have used android since the day one it came out but after switching to IOS last 3 weeks i just realized how laggy and buggy peice of s**t my galaxy S was..

posted on 03 Apr 2012, 04:10 9

8. Sniggly (Posts: 6761; Member since: 05 Dec 2009)


So what happens the first time your iPhone screws up? (Yes, it happens.)

posted on 03 Apr 2012, 12:31 2

40. sgogeta4 (Posts: 391; Member since: 02 Feb 2011)


You do know that Apple is paying Google, Samsung, and all these other companies because these companies actually make everything for Apple.

posted on 03 Apr 2012, 16:32 2

48. darkkjedii (Posts: 10354; Member since: 05 Feb 2011)


Boeing makes some of the parts for cadillac, Ferrari makes domes parts for Chevy. Who cares... Apple competes with these companies, and they pay apple for patents that they use in their software. The wheels on the bus go round and round round and round round and round. Think about it.

posted on 04 Apr 2012, 00:48

55. RageQuit (Posts: 41; Member since: 05 Sep 2011)


Now try webOS, it kicks the asses of both android and iOS in fluidity. when you do you will realize how laggy and buggy your peice of s**t iPhone was. Have fun with your software that makes doing simple things like connecting to a hospital wifi a pain.

posted on 03 Apr 2012, 04:12 3

9. Sniggly (Posts: 6761; Member since: 05 Dec 2009)


I still think these estimates are low. Besides, it's great that Google is making bank on the services it provides on all devices that use it.

For Google, it's never been purely about profit-it's been about making themselves ubiquitous- a goal they've already succeeded at with their online services, and a goal they're pretty damn close to achieving on Android. In fact, I can't imagine their market share increasing much more in the mobile world.

posted on 03 Apr 2012, 04:24 3

12. PackMan (Posts: 277; Member since: 09 Mar 2012)


ios devices = ios + hardware with highest profit margin. android = open source platform.

posted on 03 Apr 2012, 05:21 2

15. gauravbh1 (Posts: 10; Member since: 03 Apr 2012)


Least open source

posted on 03 Apr 2012, 11:07 5

35. kanagadeepan (Posts: 638; Member since: 24 Jan 2012)


A walled-Garden is NO WAY better than least open source....

posted on 03 Apr 2012, 04:37 4

13. PackMan (Posts: 277; Member since: 09 Mar 2012)


ios just claims to be secure when its not. bbos used to be secure but it has gone downhill. ios just plain boring nothin but app grid. they just buy hardware from other manufactures and toss it inside a pretty case. they are very hard to repair and repair too costs a fortune.

posted on 03 Apr 2012, 12:32 4

41. sgogeta4 (Posts: 391; Member since: 02 Feb 2011)


IOS isn't secure. The US military uses Android for a reason.

posted on 03 Apr 2012, 06:24 10

21. remixfa (Posts: 13902; Member since: 19 Dec 2008)


ok, that graph obviously does not count the liscencing fees for google apps and the Play store that they charge manufacturers. That is a whole lot of conjecture based on one number.

Assuming thats even remotely true.

YAAAAY GOOOGLE!!! Way to milk the competition while leaving your own customer's money in their pockets.
For all the iOS nuts that are going to comment something derogatory about google, remember, your paying for our OS. Thanks, guys. HA!

posted on 03 Apr 2012, 10:21 1

34. darkkjedii (Posts: 10354; Member since: 05 Feb 2011)


We're happy to help u out, since google can't make one themselves. iOS is boss, google takes the loss.

posted on 03 Apr 2012, 20:23 1

52. sprockkets (Posts: 1152; Member since: 16 Jan 2012)


Oh, so apple made OSX/Darwin completely from scratch? Didn't take a thing from BSD huh?

posted on 04 Apr 2012, 01:26

56. remixfa (Posts: 13902; Member since: 19 Dec 2008)


dude, as long as you are happy to not only pay for your phone, but mine, u can keep on making stupid jokes.

face it.. google was smart enough to know that crazed inuts are OK with spending money when they have no idea where its going :)

posted on 03 Apr 2012, 11:14 3

36. RabidCB (Posts: 2; Member since: 03 Apr 2012)


"YAAAAY GOOOGLE!!! Way to milk the competition.."

Did you mean, YAAAAY GOOOOGLE!!! Way to harvest my data..."

posted on 03 Apr 2012, 06:58 4

22. Droid_X_Doug (Posts: 5588; Member since: 22 Dec 2010)


Based on the limited $ that Google is making from even iOS sales, it should be obvious that Google is not looking at handset sales as its revenue engine. Instead, it's revenue engine is from the searches conducted from the handset.

Which explains the 'fee' it paid to Apple to continue being the default search engine on iOS.

Apple, OTOH, makes its $ from iDevice sales. The App store and iTunes ecosystem merely serve to feed the demand for iDevices, and Apple's 30% revenue share allows it to basically break even on those costs.

Good article. I was wondering about Google's revenues per Android device. Those numbers must have made Larry Ellison go batsh*t crazy. He probably didn't even cover his litigation expense.....

posted on 03 Apr 2012, 09:04 4

28. networkdood (Posts: 6261; Member since: 31 Mar 2010)


This makes sense - I rarely buy anything for my smartphone - too many ways to get it free....it is called 'being smart'.
Apple users love to get screwed by paying for something that can be free on an Android phone. Good for Android users and bad for iPhone users, and good for APPLE.

posted on 03 Apr 2012, 11:35 1

39. gallitoking (Posts: 4684; Member since: 17 May 2011)


we paid so we dont have annoying ads..

posted on 03 Apr 2012, 12:33 4

42. networkdood (Posts: 6261; Member since: 31 Mar 2010)


ad block works fine...thanks for playing, bub.

posted on 03 Apr 2012, 09:42 3

31. hepresearch (unregistered)


There is no reason for anyone here to be surprised by this unless they've been hiding in a closet for a long time and just joined. Otherwise, I do not understand why anyone here would be surprised by this... unless they are just pretending to be surprised so they can practice being drama queens...

posted on 03 Apr 2012, 11:22 3

38. RabidCB (Posts: 2; Member since: 03 Apr 2012)


Google is accomplishing exactly what they intend to accomplish. They are an advertisement company, pure and simple, Android is just a vehicle to obtain cash flow for advertisers. Unfortunately, Android users THINK they are the customer, of which they are not. To Google, the advertiser is the customer. The Android user? He/she is the product being sold. This is why, Android users are drones who line up behind a company that utters the words "OPEN", when everyone and his sister knows they are not open. Open to advertisers and carriers maybe. Once Android users come to realize that they are nothing but a bunch of sell-outs, than maybe they can do something about it and demand Google treat them like customers. But right now, they have their Google colored glasses on and cant see past their nose. Otherwise they will simply go on denying that they are a bunch of advertisement whores like the commentors below.

posted on 03 Apr 2012, 15:39 1

45. hepresearch (unregistered)


In that case, congratulations! The average iOS user has saved themselves from being an "advertisement whore" by paying in an extra $573 to their OS provider over the course of two years... while the "advertisement whores" spend less than 1% of that on their OS provider in the same time frame...

I wonder if advertisements are actually SAVING MONEY for people? If so, then what in the world is an iOS user doing with that $573 extra cash they are throwing at Apple?

posted on 03 Apr 2012, 12:42 4

43. networkdood (Posts: 6261; Member since: 31 Mar 2010)


Seems like apple users are proud to see that their favorite company is swimming in cash. Apple does not care about any one customer specifically - unless your have stock in the company, you really are not benefitting from apple getting more money out of a consumer as compared to google. This is why I have an Android phone - I have more control what I do and how I do it and what I can buy. I am not forced to purchase only from the Play market and can download stuff from the internet, like I could with my old windows phone.

posted on 03 Apr 2012, 14:00 2

44. SteffenJobbs (Posts: 1; Member since: 03 Apr 2012)


But just remember... Android is winning. The little green trashcan OS has captured 50% of smartphone market share. Market share is all that matters to Wall Street and Droid Lovers. Android is fully open to malware, fragmentation and any other crap someone decides to upload. That's what makes Android great for users. Freedom to do anything, good or bad.

/s

posted on 03 Apr 2012, 15:50 1

46. paulyyd (Posts: 326; Member since: 08 Jan 2011)


lol i think its hilarious how all android phone are all pieces of s**t :)

posted on 03 Apr 2012, 16:29 2

47. hepresearch (unregistered)


I think it's hilarious that iPhones cost less to make than any other smart phone design... thanks to "forced interns" at Foxconn. "Forced", as in "caused to act under duress"... "Intern", as in "someone who works as an apprentice at no cost to their employer"... just a politically-sanitized way of calling someone a "slave" if you ask me.

posted on 04 Apr 2012, 01:27 1

57. remixfa (Posts: 13902; Member since: 19 Dec 2008)


hep hep.. hooray! :) lol

posted on 03 Apr 2012, 19:41 1

51. sprockkets (Posts: 1152; Member since: 16 Jan 2012)


Oh, you quoted from asymco, the site that never, every reports anything negative about apple, ever.

"But he backs everything up with 'facts'! "

He still is an biased apple fan boi. Figures don't lie but liars figure.

posted on 04 Apr 2012, 00:10

54. BattleBrat (Posts: 1054; Member since: 26 Oct 2011)


Dang, Apple rape'n folk!
And the Apple fans are happy apple is making so much money, there is just one problem they fail to see, IT'S THEIR MONEY APPLE'S MAKING.
I feel my money is best kept in my pocket, And they don't realize they help google out more than us Fandroids do by buying an iPhone, money coming, money going, BEAUTIFUL!

posted on 04 Apr 2012, 12:29 1

58. Twackamole (Posts: 3; Member since: 04 Apr 2012)


android buggy phones.. no updates...

WP7 or Iphone... at least you get updates

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