Report: Google's revenue from iOS is 4 times that from Android

Report: Google's revenue from iOS is 4 times that from Android
You would think that the lion's share of the cash flowing into the vault at Google's HQ in Mountain View would be postmarked from Android. But an analysis of the company's cash flow by The Guardian shows that a majority of Google's cash has come from the iOS platform. This sounds like blasphemy to be sure, but if the numbers used by the U.K. paper are correct, Google stockholders and executives might have a bigger smile on their faces watching someone use an Apple iPhone than say, a Samsung GALAXY Nexus.

According to data from the recent court battle between Google and Oracle, the former banked $550 million from Android between 2008 (the year the T-Mobile G1 was launched) and 2011. CEO Larry Page estimated during a conference call that last year alone, Google's mobile businesses brought in $2.5 billion. So how did Google grab all of that additional cash?

Google Maps on the original iPhone

Google Maps on the original iPhone

The answer, according to The Guardian, lies in the deal that Google signed with Apple that dates all the way back to the original version of the Apple iPhone. The deal licenses Google's search technology and map database for use on the iPhone, iPad, and iPod Touch. To date, that amounts to over 300 million units.

Google is believed to make $10 per Android device sold. If you use basic math, you can compute that Google makes four times as much on iOS than it does on Android. And if the company is earning $10 on each Android device sold, that would work out to $40 per each iOS unit purchased. That figure seems a bit high, but would certainly put Google in a strong win-win situation. Ironically, Kevin Rivette, the managing partner at intellectual property firm 3LP Advisors LLC, said that if Apple licensed its technology to Android manufacturers, it could make $10 on each Android device sold.

source: Guardian via BGR

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13 Comments

1. BattleBrat

Posts: 1476; Member since: Oct 26, 2011

If apple licensed what technology to Android manufacturers? Just because you sue for patent infringement doesn't mean it was infringed upon, or that it is valid. And I like Apple, but I think they should make a better product instead of trying to sue the competition.

6. andro.

Posts: 1999; Member since: Sep 16, 2011

So say we all!

9. iTaco5.1

Posts: 3; Member since: Mar 30, 2012

Are you a moron? 90% of android was copied from iOS. App store, multitouch, kinetic scrolling and on and on.

12. bon87

Posts: 10; Member since: Nov 21, 2011

awww...so sad..poor iOS...

13. bondosho

Posts: 14; Member since: Nov 07, 2011

Everything you mentioned was done before the iOS. All Apple did was put it on a phone. YouTube "Embrace the Remix"

2. cellphonator

Posts: 298; Member since: Oct 29, 2011

What a strange world we live in, but business is business.

3. nightmare

Posts: 29; Member since: Nov 25, 2011

doesnt android use google search and maps too?doesnt that earn google money?and isnt the combined number of android devices way higher than ios devices?am i the only one seeing that this report is bogus??

4. Sniggly

Posts: 7305; Member since: Dec 05, 2009

If you throw in iPods and iPads, as well as consider that it only took until about 2011 for Android phones to start outselling the iPhones together, AS WELL AS the fact that with Android Google can't exactly license its databases and tech to itself (thus leaving ad revenue, app royalties etc. as the only way Google makes money off the platform, which they give out to manufacturers for free) it makes perfect sense.

8. ns5741

Posts: 5; Member since: Jun 17, 2011

Android uses Google map services, but it doesn't pay licensing fees to itself. Therefore, there is no map revenue. From what I understand, the money google makes on an android device is ostensibly coming from the mobile phone manufacturer using their software, os. They license the software to Apple too, but it's entirely possible that android phone manufacturers are given a much better licensing fee and that it is all packaged into the os. They have no incentive to give those same prices to Apple. I think that's what's going on here.

5. andro.

Posts: 1999; Member since: Sep 16, 2011

Good thing here is everytime ifans buy the same iphone over and over again they are funding the android system and funding the continual rapid innovation of its handsets,which is great for people who have the options in choice and many possibilties with their phone selection!

7. protozeloz

Posts: 5396; Member since: Sep 16, 2010

10. iTaco5.1

Posts: 3; Member since: Mar 30, 2012

This shows how unprofitable android is. When your main demographic is broke teenagers and hackers you can't exactly sell too much. Android OEM's are forced to give away their handsets and google loses money on its market/play store.

11. remixfa

Posts: 14605; Member since: Dec 19, 2008

Do you think that apple pays google for those google maps pack ins and other google items? you bet your ass they do. Do you think google charges apple more than they would charge an android OEM for their apps? A little logic. Yet another soon to be banned taco account. sad sad.

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