In a response to how they will make money from Android, during its third quarter earnings call Google bragged that Android users search twice as much as others. This is the cornerstone of their revenue stream for Android and mobile. Google also emphasized that this is important for carriers too, as they can make money from the mobile adverts.
It is interesting to note that Google do not expect to make much money from the Android Market. Instead this is a place where Google wants app developers to become rich. Sure. But in truth, it is not a terrible plan. In fact, if Google were to slash their take of revenue sharing of apps sold through the market, then more developers would create content for Android which is what ultimately is driving many users to pick up a smartphone for the first time, or switch brands. The iPhone has some of the best mobile apps around, but by increasing the quality of the applications for Android then more users will come, which might increase search revenue.Nothing encourages developers to come along than more money. Sure, there might be a lot of trash to wade through, but if anyone can make sorting that easy, Google can.
[Source: Venture Beat]