In Google’s quarterly earnings call CFO Patrick Pichette states, “Android in terms of cost is not material to the company.” Clearly, Google see their investment into Android as a long term strategy whereby Pichette notes Android is both an “offensive” and “defensive” effort from Google.
The news comes in the wake of lower Cost Per Click revenue growth compared to this time last year. It is largely believe that the mobile-sector is bringing this down. Google, however, clearly see Android as a short-term indulgence that will repeat longer-term rewards. Right now the immediate profit of Android is not important to the company and watching the entire mobile consumer market explode, in large part thanks to them and the competition they have brought, is enough for Google right now.