Google Licenses out their in house apps. GAPPS...
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You people need to take a step back from this.
Google is a profitable ~$40 billion company. And from its $40 billion in advertising revenues (because thats where Google actually makes its money) it makes about $12 billion a year. A 28% profit margin. Fair enough, but also worth noting is the fact that every dollar of revenue
isn't equal to a dollar of profit. (I'm going to ask the Fandroids present to keep this little factoid in mind...)
Got that? Revenue DOES NOT EQUAL PROFIT.
I've convincingly shown that Android's revenues are (relatively speaking) tiny. Licensing revenue= zero. App Store revenue: $72 million per year. Advertising revenue: Arguably 40% of $2 billion in "mobile revenue". Call it $800 million.
But that $800 million
isn't pure profit. It costs Google something to serve it up. Its got all the same costs as it does on its other searches. Bandwidth, servers, data centers, R&D, etc. etc. Lets say that Google's "operating profit" on the $800 million pure Android search revenue is 40%. Thats $320 million. A lot of money to you and me - but a rounding error to a company of Google's size.
Thats also before you look at Android's
costs. The developers salaries. The bandwidth and hosting costs. The legal bills. Let's be generous, and say that Google's Android costs are 60% of Android revenues: $192 million. Leaving $128 million in "profit" from Android.
Not a lot of scratch for a $40 billion corporation. (Actually, more of a rounding error.)
Now, you also need to keep in mind Google's business model, and its hopes for the future.
Android's business model is that it hopes to make money from Advertising Impressions. Fair enough. But it ignores the fact that not all Ad Impressions are created equal. In very few words, an "Ad Impression" to a user in North America or Western Europe is worth many times what an Ad Impression in Asia or Africa is worth.
Android has already captured most of the most profitable users its ever going to get. And its losing money by the train car load doing so. If Android "activates" a billion users in China (where Baidu is the dominant search engine, and Google is prohibited from doing business) what do you think that is going to do for Google's bottom line?
Keep down voting my posts. But until you have the intellectual courage to address these issues, I've got very little respect for you.