Apr 6, 2014

How Google makes money from android ?

Google doesn’t make any money from Android not from the OS. With all the hours they spend contributing to the Android Open Source Project, Android actually costs Google money — a lot of money.

" In short Google spends money on Android development as Search is moving away from Desktops to smaller devices and going mobile. So they don't want to loose the mobile search to some others, so investing heavily on Android "

Google isn’t running a charity. How can their shareholders be happy with them throwing money hand-over-fist at Android? I’m glad you asked. Shareholders did to. Google asked them to trust them for the time being. I think the shareholders are happy with Google’s progress with Android. But to see why, let’s dig a little deeper.

HOW GOOGLE MAKES LITTLE MONEY MONEY FROM ANDROID?

Google makes money (and justifies giving away the OS) by licensing the Google Apps that come on most Android phones (but not all). Apps like Gmail, the Android Market, Google Search, and others come in something called GAPPS. The Market is really where Google is interested. Sure, the other GAPPS add value to the phone (hence why carriers license their inclusion on Android-powered phones), but Google is making money with every app sold through the Market. Even free apps make Google money. Developers have to pay to have an account to list their apps under. Even ad-sponsored apps are likely using Google Mobile Ads, so Google’s getting revenue from that source as well. That’s not the elegance of Google’s mobile revenue stream. Google isn’t so much after making money from apps sold through their Market, or even by charging developers an admission fee to get their apps listed. Instead, Google saw that computers were getting smaller and smaller, more and more mobile, and connected to the internet in more ways. Now, instead of trying to remember something to look up on your desktop computer later, pull out the laptop… or better yet: your phone.





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