Can Android be a $10 billion business? Google has 98.3% of the mobile search market

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Can Android be a $10 billion business? Google has 98.3% of the mobile search market
Google is expecting many things from its Android platform. Like, say, $10 billion in revenue annually. That seems a number that is very optimistic, especially considering that manufacturers pay Google nothing to use the OS; but as CEO Eric Schmidt points out, "If we have a billion people using Android, you think we can’t make money from that?" The executive says that to reach $10 billion, all Google needs to do is to collect $10 from every Android user. One plan that the Mountain View based firm is cooking up is to sell newspaper subscriptions. Google is also developing a social networking site that it expects will match Facebook.

Currently, Android phones are being activated at a rate of 160,000 handsets per day. This allows for continued widespread growth of Google branded apps like Maps, Google Search and others. Will Google be able to monetize all of these things into $10 billion of revenue every year? One thing that many have learned in the industry is not to doubt Google. After all, according to Statcounter, the company controls an amazing 98.29% of the mobile search market. Yahoo is second with an .81% share with Bing tied with "Others" for third with .46%. If Google can put up those kinds of numbers, who knows, maybe $10 billion in annual Android revenue will turn out to be too light.

source: TechCrunch, WSJ



5. businessmobiles

Posts: 1; Member since: Jul 30, 2010

Google can afford to build Android's popularity without seeing a return from the mobile phone market. Their dominance in the search market means they can cheaply and easily promote Android until it is ubiquitous. If they can make Android half as ubiquitous as Google search then there are all sorts of ways they can start monetising it. Subscriptions are one example. A professional version for business might be another. And if Google bundles Orkut in with its mobile OS and achieves facebook-like popularity (again, not beyond the realms of possibility given Google's position) then they can monetise that too, for example with advertising and (again) a professional version for businesses.

6. Mbock

Posts: 6; Member since: Mar 24, 2010

I agree with the idea of a professional version of android. Right now I see it as hobby machine, play your music, surf the web, watch video, and download apps. I don't see if dethroning BB as the head of mobile business unless they start to play the game like Microsoft does with Windows. Lets just hope if they do start to have mutiple versions that is can be easily swaped on phones so it doesn't fall into the pit that BB has with being business first and everything else a far cry from what I could be. Right now all we can hope for is Google to see the call and hope they can answer it.

3. networkdood

Posts: 6330; Member since: Mar 31, 2010

I wonder if GOOGLE still has plans to create their own version of the PC - imagine a world without IE.....that would be awesome...

4. ajmoore88

Posts: 25; Member since: Apr 13, 2008

I can't even remember the last time I used IE, especially since I'm typing this up on Chrome

7. iHateCrapple

Posts: 734; Member since: Feb 12, 2010

Chrome is sick! It really is the fastest browser, IMO.

1. der614

Posts: 13; Member since: Jul 24, 2009

i think its possible due to the fact that with android, your phone that you get that is "in" at the time becomes a thing of the past within a few months and that makes people go out and by the latest and greatest (i use latest and greatest VERY lightly) android phone which means more activation and money that google takes in. so yeah I think that 10 billion a year could be very possible in their case.I must say android is one OS that you cant keep up with because its always changing and it has hella devices coming out supporting it.

2. cc16177

Posts: 312; Member since: May 09, 2010

You don't need to "keep up with it"... it's called OTA updates. I bought my Moto Droid November 7th of last year and when 2.2 is released not only will I receive it on my new Droid X but my little brother will receive it on my old Droid. All he has to do is press "install update", that seems like not only a benefit to both him and myself, but it's not very difficult anyways.

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