Piper: Android to become billion dollar business in 2011

February 8, 2011: 11:55 AM ET

Source: Piper, Click to enlarge

It is all in the accounting.

When you have two separate internal businesses, mobile and advertising, who do you give credit to when money is made in mobile advertising?  Do you give full credit to the mobile business and take the revenue out of the advertising wing?  Or, do you split it up  between the two with some arbitrary percentage allotted to each? Google (GOOG) and its analysts are stuck in that conundrum.

To that end, Piper Jaffay's Gene Munster thinks they've worked out some sort of basis for allotting money to their mobile operating system and has assigned Android a dollar amount per Android phone of $5.90 this year and $9.85 next year.


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