Google has only earned $550m since 2008 of Android. Really?

March 30, 2012
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dollar roll

Google’s mobile operating system Android has been released in September 2008, and, even though we have never knew exactly how much money it’s producing, we’ve always figured that Android is one of the most important sources of revenue for Larry Page and Sergey Brin’s technology giant. Of course, Android (or anything else, for the matter) is no match in terms of money making to the mother of all cash cows – Google’s search business. Still, having the world’s top mobile OS should bring in some decent amount of greenbacks, right?

Some recently released figures might suggest a whole different scenario. According to UK’s broadsheet The Guardian, the entire income that Android has generated for Google in three years and a half could be  “just” $550 million.

All right, some of you might say that’s still a big pile of money. Well, it actually isn’t, if we take into consideration the fact that about 200 million Android devices have been activated by the end of 2011. That means that, on average, each Android-based gadget has only brought Google a little over two bucks, which is, to be honest, disappointing, to say the least.

Before jumping to other conclusions, though, including what some of you might be thinking right now (that Google made a big mistake with Android and should cut the project short sooner rather than later), we should talk a bit about the source of these figures. Why is that? Because it might be an indication that the number is far off from a real, official, and credible source.

As some of you might know, Oracle has recently filed a patent and copyright infringement trial against Google. The trial, scheduled to start last October, will, in fact, see a first court hearing on April 16, 2012 at the US District Court for the Northern District of California.

Oracle’s allegations initially referred to five Java-related patents that were supposedly infringed by Google, but, according to some sources, three patents will be dismissed by the Court or withdrawn by Oracle’s legal team.

The two withstanding accusations have, however, at least some chances to harm Google, whose legal department has decided to offer Oracle a settlement offer. The offer is based on Google’s total revenues generated by Android devices, which The Guardian estimated (based on the settlement offered by Google) at $550 million.

 

However, as revenue figures from such a long period can be easily manipulated, concealed, or modified, it’s pretty hard to believe that the guys at Google are just going to let everybody know about their real earnings, and give Oracle a shot at leaving the table with a big pile of money.

It’s far more comfortable to play the role of a victim, to minimize the accrued earnings, and to cheat Oracle of what they could get out of the trials, isn’t it? Well, it’s practically impossible to know for sure if Google is playing it fair or not about this settlement offer, so for the time being we can only speculate.

On the other hand, I think that one thing is clear, nevertheless. If Oracle really has a strong case against Google and they think for just one second that those revenues are phony, we will be seeing a very interesting and potentially bitter legal battle over the next year. Or, at least, taken to the point where Google changes its initial statement and declares other figures as “official” earnings.

Either way, I think this is an interesting story to follow up in the coming weeks, so stay tuned and we will let you know about any developments that take place.

Comments

  • Brianepatt85

    yeah I find that hard to believe…… 2 bucks for every smartphone activated. IMPOSSIBLE!

  • Matt

    It wouldn’t be difficult to determine the minimum amount Google has made on paids apps since they take a 30% cut of all apps (and probably the 3% interbank conversion rate for non-US apps on top of that). For every paid app in Play just scrape the minimum amount of INSTALL’s and multiply by 0.3 of the of the app price, and there’s your number…

  • Noyfb

    Sometimes it is cheaper in the long run to offer a settlement, even if you are in the right.
    These companies oracle, apple, are becoming patent trolls. They have given up on innovations and combing through everyone else’s code to see if they have “accidentally” stolen from them. Obscure patents that are so vague about what they are and what they do somehow were able to be filed and now these tech companies can’t beat their competition they sue them. Even Iphone 4s has stolen 5 of android’s key stuff for their own. These companies aren’t innovative anymore and are now just patent trolls. I hope Google gets away with paying less and low balls their earnings, Google deserves to be a leader and IMO the only company still trying to be innovative anymore.