Is Google Making More Money From Apple’s iOS Than Android?
Surprisingly, the rise in Google’s smartphone revenue is derived more from iOS than from Android. Even more so, it seems that Android doesn’t make as much money for Google as it does for Apple.
These findings are based on numbers from the court case settlement between Google and Oracle (NASDAQ:ORCL) in which Google offered Oracle $2.8 million and 0.515 percent of Android revenues on an ongoing basis.
The assumption is that $2.8 million represents the amount Google owes Oracle for past Android revenues. If Oracle is entitled to 0.515 percent of future Android revenues, it stands to reason the $2.8 million is the equivalent of 0.515 percent of past Android revenues. If so, simple math determines Google’s overall Android revenues to be $544 million to date.
Last October, Google announced that it had a $2.5 mobile run rate. The run rate represents the revenue Google is making every year on average from each mobile device. Android revenues were just a small fraction of that mobile run rate, the rest coming from other mobile operating systems, including a large chunk from Apple’s iOS phones.
To contact the reporter on this story: Diallah Haidar at email@example.com
To contact the editor responsible for this story: Damien Hoffman at firstname.lastname@example.org