Google is Making More Money From iOS Devices
A data analysis revealed in court shows that Google is making four times as much from iOS than from Android. The document reveals that Google made $543 million from its own mobile platform between 2008 and 2011. In the last two years, about 90 millions of Android devices are activated and 200 million Android devices have been activated, by the end of 2011. Google offers free licenses to phone vendors and generates revenues through a cut of app sales and advertising. Though Google doesn’t reveal how much it makes from Android, the company takes approximately a 30 percent cut. Google has also been offering licenses of its services – search, YouTube, Maps and so on – to other mobile platforms, including iOS. The first iPhone was released in 2007 and since then, some 315 millions units have been sold, generating sizable revenue for Google.
Although Android is highly sustainable, in terms of value created, it leaves much to be desired. Google only generates $1.7 annually per device and with the usual carriers’ two-year contract; it generates only $3.5 over the life of a smartphone. On the other hand, as Apple uses a huge margin, the company is making more than $570 of profit for each device sold. Additionally, Apple is making more than four times of revenue than Google generates through Google Play. While Google clearly depends on iOS to maintain its acceptable profitability in mobile industry; driven by the violent determination of the late Steve Jobs, the iPhone’s maker is still very much at war with Android. Apple is indirectly picking on Google by attacking its proxies using numerous patent disputes in many courtrooms. Samsung is the leading manufacturer of Android devices and although both are close partners in manufacturing sector, they are fighting bitterly on some patent infringement cases.