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Google's Android profits: '40% of a little is a lot less'
May 15, 2012: 9:10 AM ETAn eye-opening comparison of Android's income statement with Apple's
Source: Asymco.com
FORTUNE -- As part of an extended look at what he calls Google's (GOOG) "Android economics," Asymco's Horace Dediu on Monday published what may be the first independent estimate of the company's Android income statement.
As the chart at right shows, Android generates revenue for Google through three kinds of ad sales (Google's Search, AdSense and AdMob). After costs and revenue sharing are taken out, there is some profit left over for Google: roughly $2.75 per Android device per year, according to Dediu.
Is that a lot? To put his numbers in perspective, Dediu on Tuesday posted a chart comparing Apple's (AAPL) iPhone income for the first three months of 2011 with Google's estimated Android income for the full year.
Because the Android chart is dwarfed to near invisibility by Apple's, Dediu posted the scaled up version copied below. To understand what's going on, you'll probably have to see the Asmyco charts at their proper scale. Click here.
As Dediu writes:
"As various members of the Android ecosystem are rewarded from the 40% revenue share of Android, it would be important to consider the scales involved in these illustrations when considering the influence Google exerts. It could be argued that Google's spreading of wealth from search creates strong incentives for participation in its ecosystem.
"However, there is little wealth created. 40% of a little is a lot less."
The 4 X scale charts below. If you look closely, you can see the Android chart we showed above at the center of the image below, near the bottom.
Source: Asymco.com
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Google's Susan Wojcicki: Where we're heading
Nearly all the company's revenues come from products like AdSense. Now, Senior Vice President of Ads Susan Wojcicki weighs on where Google advertising is headed. By JP Mangalindan
JP Mangalindan, Writer - Feb 28, 2012 3:51 PM ET -
GOOG Earnings Thursday: Analyst forecast roundup
Analysts are publishing their forecasts for Google's Q1 2011 earnings.
Thursday's earnings call will be the first under new CEO Larry Page and analysts are expecting to get some guidance on the direction of the company. Overall the outlook is positive with expectations of Google (GOOG) beating guidance and the Street.
Interestingly, there isn't much talk about the ITA purchase, which has now gotten Federal approval.
Here we go...
Seth Weintraub - Apr 12, 2011 2:16 PM ET -
It is time to stop thinking of Google as a Search company
Google's "castle" has long been thought of as search. But the company does so much more, and in fact its mobile platform may be the real common thread.
In a post last week entitled The Freight Train That Is Android, Benchmark Capital General Partner Bill Gurly explains the unprecedented success of Android as a defense, or "moat" around Google's (GOOG) castle.
One of Warren Buffet's most famous quotes is that, "In business, I look MORE
Seth Weintraub - Mar 29, 2011 2:52 PM ET -
Google's Admob turns to Adsense
Keeping it all in the Google ad family...
Today, Google (GOOG) is sending some of its Admob mobile app developers some good news. The search giant will start placing Adsense ads inside of apps that use Google's Admob advertising. That means fill rate will skyrocket toward 100% and developers will get paid much more, across the board.
The move may also pull some of Apple's (AAPL) iAds user-developers away, especially those who MORE
Seth Weintraub - Mar 11, 2011 3:57 PM ET -
Today in Tech: Google punishes Overstock, iPad 2 images?
A curated selection of the day's most newsworthy tech stories from all over the Web. Sign up to get the newsletter delivered to your inbox every morning.
Alibaba.com, which recently lost its CEO and COO over fraudulent company activity, elected Jonathan Lu, who led the company's efforts with the payment service Alipay, to take over the top executive spot. In a company-wide email, Lu urged employees to "forge ahead" and said he MORE
JP Mangalindan, Writer - Feb 24, 2011 7:50 AM ETPosted in: AdSense, Alibaba, All Things Digital, Apple, Apple rumor community, Google, iPad, iPad 2, new iPad, New York Times, Wall Street Journal -
Google changes algorithm to reduce spammy sites
Matt Cutts, who heads the webspam team at Google (GOOG), today announced a change to Google's search algorithm which aims to improve results and reward sites which contribute original content to the Internet. Sites that scrape or copy other sites' content will be demoted.
From the post, it sounds like the change is a small one but, if successful in meeting its objectives, could be followed by more significant changes:
Seth Weintraub - Jan 28, 2011 1:27 PM ETPosted in: AdSense, content farms, Demand Media, Google, Matt Cutts, Search algorithm, User-generated content -
Is Google really interested in ridding its results of spam?
Spam sites are mostly benefiting from Adsense advertising...and so is Google.
Today, Google's (GOOG) Matt Cutts blogged that they were aware of the recent complaints about spammy search results and were taking actions to correct them. But complaints aren't just that Google is showing spammy sites in the search results. There is concern that the reason those spam sites are showing up higher than the original content they are reproducing is MORE
Seth Weintraub - Jan 21, 2011 3:46 PM ETPosted in: AdSense, content farms, Google, Matt Cutts, Search, Spam, User-generated content, Web search engine -
Mobile geo-targeted ad rates reaching new highs?
Mobile ads are going to be a big business.
Yesterday, ooVoo CEO Philippe Schwartz came into the Fortune offices to demonstrate his company's excellent new mobile video conferencing software (more on that next week) on Android and soon on iOS.
On the desktop, ooVoo has two revenue models. One is a subscription service, mostly sold to businesses who want to do multiple-window video conferencing without advertising. On the consumer side, they run Google MORE
Seth Weintraub - Dec 9, 2010 2:19 PM ET -
Google's AdSense gets an updated interface
Announced yesterday and made live today, Google's updated interface allows publishers to see more of how their ads and ad spaces are faring.
Publishers last night were greeted with the opportunity to try out a new AdSense dashboard that resembles, and is better integrated, into the Google (GOOG) DoubleClick and Analytics user interface.
Google touts the updated AdSense's "more insight, more efficiency and greater control" as reasons to upgrade.
AdSense is Google's MORE
Seth Weintraub - Nov 3, 2010 10:28 AM ET
