
How will Google make money from Android? - microreviewsorg
http://microreviews.org/how-will-google-make-money-from-android/
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bradleyland
They won't; not directly. They don't need to either. Google is in the business
of knowing their users. They make money by:

A) Knowing the make-up of your daily online life

B) Presenting ads that are relevant based on that profile

Android keeps you inside the Google ecosystem. Google search, Google mail,
Google docs, Google RSS reader, Google shopping. Each of these utilities feed
the core purpose of _knowing you_ , which is beneficial to Google's bottom
line. The better they know their users, the better targeted the ads can be,
and the better they can convert.

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seunghomattyang
I really hope Google goes beyond just advertising. It's great that their
services are free but I would still pay a premium for a polished, distraction-
free environment. I'd rather pay a fee than to be surrounded by advertisement
everywhere I go, especially on smaller screens.

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barredo
I think the OP is making a good point but direct profits or revenues wasn't
the lead motivation for Google to go full throttle with Android and then the
$12.5B MMI deal... it was that this way:

With Android, Google accelerated/is accelerating the pace of smartphone
adoption (more smartphone = more internets = more Google = more Ads) and at
the same time putting their services in front of the smartphone vendors for a
undisclosed, but possibly tiny, fee per device. Enabling Google Search as
default but not requiring it (as it's been the case of many Android
smartphones with Bing by default in the US).

Note1: Android is free. Google Core-Android-Apps are not: Gmail, Market, and
so on

Note2: Maybe even the fee is not a monetary one. It could be the option of
selling the smartphone as a 'Android' phone (with is trademarked), using the
Android logo, etc.

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Arkid
Putting Android into more consumer electronics devices can be another option.
TV might be the tip of the iceberg.

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barredo
Google wants Internet in everything. That's the only thing i'm 100% confident
about them.

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bignoggins
Considering even Apple doesn't get any meaningful profit from its app store, I
don't see Android Market being a profit center either. They need Android
Market just to be competitive with the App Store.

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Arkid
Apple's app store revenue is around $2 billion. If Android market can generate
a similar amount of revenue for Google, it should a good share of the total
Android revenue.

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bignoggins
What good is revenue with no profit? Apple has said that app store basically
break even in terms of profit, so I'd venture to guess Android is similar.
Although they don't need an army of approvers so maybe their costs are less.
But they most likely don't make as much from paid apps or in app purchases as
the app store either.

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DanielRibeiro
Well, _Search Is Google's Castle, Everything Else Is A Moat_ [1]

[1] <http://techcrunch.com/2011/03/25/search-googles-castle-moat/>

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Nick_a_a
Agree partly to TC on this.Search is the real big one but Google can't depend
on the one trick for too long. Their growth has sort of stalled in the last
few years.

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azal
They do charge the $25 sign-up fee, which they can increase and follow the
AppStore Model. + they are stil lgenerating revenue from Google search results
and AdMob, which most of the Apps are using.

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Hyena
I wonder if Google even needs to profit from Android or "keep people in its
ecosystem". Given Google's scope, it might be profitable to do any fairly low
expense thing which increases Internet use.

