Oracle says Android activations bring $10 million to Google's pockets each day

Oracle says Android activations bring $10 million to Google's pockets each day
Oracle’s lawsuit against Google is not getting any good news recently - after one of its patents was found invalid, recently the trial date and structured got approved much closer to Google’s ideas about how they should be rather than Oracle’s. In an effort to make its case, Oracle has brought some interesting calculations about the revenues Google gets for each day of Android activations:

"Each day's worth of activations likely generates approximately $10 million in annual mobile advertising revenue for Google."

It should be noted that the $10 million Oracle arrives at, is only from ad revenue, but doesn’t take into account Android Market revenues, and the benefits to Google search. Here’s the lengthy quote that explains all the areas where Google benefits from Android:

"This revenue does not even include all the other value Android generates for Google, ranging from Android Market revenue, to other Android-related services, to ensuring that Google will not be locked out of the mobile business, to lucrative relationships with manufacturers of myriad devices on which Android can and does run, to the inordinately valuable access Android provides to customers for its new social network service, Google+. Indeed, Android has enabled Google to wield such power with regard to search and other services that its Android distribution and licensing practices -- far from the 'open' practices Google has proclaimed it lives by -- are under investigation by competition law agencies in the United States, Europe and elsewhere."

Now, we don’t know if that makes much of a case for defending Oracle’s cause that Android is built around copyrighted Java APIs, but it certainly adds a reason for nearer-term trial and an interesting financial perspective. 

Oracle might have arrived at the $10 million a day calculation from internal information, but Florian Muller of FOSSPatents notes that it’s most likely that the number is derived from an assumption of ad revenues of $14 per Android user.

source: FOSSPatents via BGR

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33 Comments

1. drahmad

Posts: 480; Member since: Aug 20, 2011

10 million an year. i think microsoft is making much more than this. 5 dollar per device and about half million daily activations means .5x5=2.5x70%= 1.75 million per day x 365 = 638 million an year. wow

3. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

I think it says 10 million a day, NOT at year.

16. drahmad

Posts: 480; Member since: Aug 20, 2011

lol, read it again.

19. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

Yeah that is why I said "I THINK", because there is a conflict of information on this article. Not sure what to believe. They quote this, "Each day's worth of activations likely generates approximately $10 million in annual mobile advertising revenue for Google." Then in the last paragraph they say this, "Oracle might have arrived at the $10 million a "day" calculation from internal information,....." Plus the title of the article is this, "Oracle says Android activations bring $10 million to Google's pockets each day". Again I am not sure what to believe. I think it maybe 10 million a day is what they meant not per year, but who knows based on this article. lol, I think you need to read it again also!

21. drahmad

Posts: 480; Member since: Aug 20, 2011

:-) thanks

22. remixfa

Posts: 14605; Member since: Dec 19, 2008

its 10 million per day. take the estimated $14 per handset x # of daily android sales = 10 million-ish. Maybe it should say "android makes 10 million more each day towards yearly revenue than it did the day before".. hell.. i dunno. i get what its trying to say but yea its hard to sum up.. lol.

27. thinking

Posts: 130; Member since: Jan 19, 2012

714286 is what they have to activate each day to get 10 million a day as per the $14 assumption per handset. Not sure - are they activating as many?

31. drahmad

Posts: 480; Member since: Aug 20, 2011

about 500000 daily

32. drahmad

Posts: 480; Member since: Aug 20, 2011

i think oracle has overestimated. just each of you think, how many times you clicked an ad? rember one click is about a few cents....so can u earn 14 dollars to google?

28. thinking

Posts: 130; Member since: Jan 19, 2012

when there is a conflict between the quote and the interpretation of the quote (last para and title are the interpretations), we should go by the quote.

9. rashod

Posts: 13; Member since: Nov 24, 2011

you better read the news before post fool comments dude.. microsoft is a loosing company..but google not... just think... its my comment

11. remixfa

Posts: 14605; Member since: Dec 19, 2008

neither is a losing company. the only one losing right now is rim.

20. drahmad

Posts: 480; Member since: Aug 20, 2011

microsoft is not all about windows phone popy. MS has other huge businesses too.

2. mozes316

Posts: 144; Member since: Sep 30, 2011

I'm not big on legal issues, but is Oracle trying to say that a portion of this said amonunt made by Google is owed to them because of patent infringments? Or that Google makes too much money?

5. mozes316

Posts: 144; Member since: Sep 30, 2011

Also "Each day's worth of activations likely generates approximately $10 million in ANNUAL mobile advertising revenue for Google." is way different from 10 million EACH DAY, as the title suggests.

4. ivanko34

Posts: 617; Member since: Sep 04, 2011

Someone must say to oracle that everything is normal Google made a very good very nice OS so it is normal they get back some money

6. bloodline

Posts: 706; Member since: Dec 01, 2011

what is going on here? Google put alot of time and effort in android and offer it free to manufacturers its only fair that they try and get money some way. article is stupid and pointless.

8. mozes316

Posts: 144; Member since: Sep 30, 2011

The article doesn't seem too biased, simply reporting something that happened. Thats how I took it anyways...

7. snowgator

Posts: 3621; Member since: Jan 19, 2011

Google took a chance on a open source network, and poured tons of money into it. They approached it from a different angle than anyone else, and changed the game. Does that mean that some of these lawsuits don't have merit? Of course not. But why in the name of Gilligan's Island does Oracle think anyone remotely cares how much money Android makes as related to their case? Is the judge supposed to be offended by the numbers, and demand big, bad Google share it's cash with them just because? Prove your case, or shut up.

10. rashod

Posts: 13; Member since: Nov 24, 2011

oracle made the java.. as i know java is open source... so what is the big deal...yes android use java and all so c# and Xml , but its a googles property....

18. terabyteRouser

Posts: 457; Member since: Oct 18, 2011

Umm, Oracle did not make Java. Sun created Java. Oracle bought Sun. Android development started before Oracle purchased Sun. Sun did not intend to sue Google for using Java. How can Oracle buy a company and renege on all the deals made prior to their acquisition?

24. stealthd unregistered

There were no deals "made prior". Google never licensed Java from Sun/Oracle.

12. theBankRobber

Posts: 682; Member since: Sep 22, 2011

This is strange hearing this kind of amount. Whenever you bring up android and ios , sheep always say Google doesn't make money on android like apple does with the iPhone. But after hearing this, it turns the tables around (if its true) .

15. Tux4g63

Posts: 121; Member since: Oct 21, 2011

Apple makes boatloads of money on every single one of their devices. Google makes nearly nothing on phones/tablets because it doesn't manufacture the hardware. And the point that people bring up is that Apple makes a lot of money from everything they have in their ecosystem. No sharing involved.

25. stealthd unregistered

Google is the one who said they don't make money from Android, in their case with Oracle, not that anyone took them seriously.

13. MorePhonesThanNeeded

Posts: 645; Member since: Oct 23, 2011

Oracle didn't make anything, they just bought Sun and acquired Java that way. Other than that Java is just a compiler and native language. Doesn't do anything by itself, Google just decided to make it open source and build of it that way. Helps keep the leeches from trying to get money off them since it's open source and not like iOS or WP7 so they don't have to give anyone a dime since it's open source each iteration that Google releases. I have a feeling that Oracle might not get anything out of this lawsuit as so far they keep getting shot down. Oracle has to prove that Google makes money off the OS, when in fact thye make money of the advertising derived from people using their search engine which can be used on the android phones, but it's not restricted to use only Googles search engine. I can freely switch between Google, Bing and Yahoo from within my phone as they come preloaded with the OS.

17. Whateverman

Posts: 3295; Member since: May 17, 2009

Good point!

14. topcat

Posts: 4; Member since: Dec 21, 2011

"Each day's worth of activations likely generates approximately $10 million in annual mobile advertising revenue for Google." That reads $10million annually for all the phones activated ON EACH DAY. So, that's $10M per day times 365 days in annual revenue.

29. thinking

Posts: 130; Member since: Jan 19, 2012

Doesn't sound very convincing, what with the "likely" in their quote. :-)

23. Forsaken77

Posts: 553; Member since: Jun 09, 2011

Java is free to use as long as you're not using their product to make money in a product of your own. I think Google is violating that. Android is a business. Google didn't create it because they were being nice. They created it to make money. But we don't know the arrangements, if any, Google made with Sun. And when Oracle bought out Sun, I would think they would've had a stipulation that Oracle must honor any deals that Sun has in the works.

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