Well if Android was profitable (which it likely is) then Google is benefiting from it.
Profitable for whom?
How does Google benefit?
C.
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Google has been horrible investment since Android
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Profitable for whom?
How does Google benefit?
C.
How has the stock market done? Or yeah negative. ... Plus do not forget that AdMod more than likely is gaining in value that was not added into the mix.
5.3% is pretty good right now.
There is a difference between making an actual profit...
....and making an investment of $750M which will take many years to break even.
For instance, if you gave me a million dollars. And in return I paid you 50K a year. Would you think you were doing well?
C.
Ah, this explains why the market is not speculating on Android making Google any actual money.
C.
Android is helping Google drive more than enough incremental search revenue to pay for its development--and then some.
Here's the money quote:
Trust me that revenue is large enough to pay for all of the Android activities and a whole bunch more.
Read more: http://www.businessinsider.com/android-revenue-2010-8#ixzz0wnzC1lzs
You missed a big peice of that pie right there. I could in theory say at any moment in time I want my million back and I got it.
They could just sell admob for 750 mil. So for having that money tied up they are getting 40 mil a year. If at any point in time they need the money boom they sell it and recover it all.
From that article...
Search revenue seems a pretty feeble revenue stream. On the desktop, I am sure search creates some good advertising revenue. But I am pretty convinced that mobile search does not convert into anything like the same revenues. If it did, mobile advertising would be much more profitable.
Has anyone ever intentionally clicked on a mobile ad. Do you even know someone who has ever clicked on a mobile ad?
Giving away an OS to profit from search seems like giving away cars to make profit from motels. It's just odd.
C.
Well about your cash.... err.. It's kind of tied up in the business.
That's if the valuation holds. Now Apple has entered the advertising market perhaps AdMob is worth less? In ten years AdMob could be worth squat. That's the nature of speculative investments.
Google can only claim to have made money, when and if that investment is entirely paid back.
C.
I thought Apple was the only one that was a control freak.
Unless Google turn the land of mobile search into a single-party fascist dictatorship they won't be able to make much money from any mobile device, Android or otherwise.
C.
So you have based your argument on something you are "pretty convinced" about? Even though Google themselves have told you that it is a very strong source of revenue. If mobile advertising wasn't profitable, Apple wouldn't have brought out iAds.
The article says that mobile search revenues covers the development costs of Android and a little bit more. It isn't a "very strong" earner because at the end of the day it's just search.
So it's better than break even. But we don't know how much actual profit Google make per phone. Best guess is a few dollars.
The mobile advertising revenues we know. They are published. It's going to be years before they get their investment back.
Apple's business model is different. They make more than $200 for every phone they sell. Incidentally they also make revenue on each Google search made on an iPhone.
Perhaps the market should compare and contrast these two business models.
C.
iAd making AbMob worthless that is a laugh.
iAd will ONLY be on the iOS. How much has apple spent on making iAd. My guess is a ton of money. My guess is it will bring in less than AbMob does each year. How long until Apple break even.
Really that sounded a little fanboyish and killed all your arguments right there.
AdMob's valuation was based on a bidding war between Apple and Google. If tomorrow, Google wanted to sell AdMob, who would they sell it to? Who would pay $750m?
Not Apple anymore. They have their own venture. So I do think the existence of iAd reduces the valuation of AdMob.
Google's speculative punt on AdMob may eventually pay-off one day.
But the notion that Google"s mobile strategy is comparable to Apple's in terms of profitability isn't based on facts.
C.
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Aside from admob, 30% cut of app sales, search metrics and the like, Google also licence the Google services/apps that aren't a part of android os.
http://android-developers.blogspot.com/2009/09/note-on-google-apps-for-android.html
Its the reason they issued a cease and desist in cyanogen for distributing the Google apps with his roms. Now he doesn't, all is well.
Carniphage said:
Aside from admob, 30% cut of app sales, search metrics and the like, Google also licence the Google services/apps that aren't a part of android os.
http://android-developers.blogspot.com/2009/09/note-on-google-apps-for-android.html
Its the reason they issued a cease and desist in cyanogen for distributing the Google apps with his roms. Now he doesn't, all is well.
It does not sound like a big revenue stream. Any idea what the revenue per device is?
C.
A quick glance at your post history shows someone who, 95 posts out of 100, either starts arguments with people about Android > iOS or jumping in to defend all things Android. I'd say you look more like a kettle than a pot, though.
You went through all of my 100 posts? I'm flattered. Must be a slow night, huh?
So what If android is superior? I own an iCrap BC my work pays for it. I loved my nexus 100x more. Make that 1000x more.
Compare the number of android devices in the wild in 09 versus 10 and you will have your answer.
If I had to speculate, I would say it goes a little bit like this.
Google knows they can't compete with Apple's high level of quality so they aren't, instead they are trying to flood the market with android phone. The more android phones, the more people forced into using the android market. The more people in the android market the more devs will be forced to support it just because the ability for profit is there.
It's a numbers game really, google hopes that they can basically pull a MS Xbox and muscle their way into the market.