Do you know How google make money from android? Well, Google has an enormous amount of revenue generated on daily basis and one of the sources of these revenues is the Android market. Yes, surprisingly though but Android makes a lump sum amount of money for Google.
A case filed by Oracle showed that Google has made $31 billion dollars in revenue from Android. As part of the lawsuit between Oracle vs Google, in January 2016 Lawyers at Oracle also claimed that out of this $31 billion dollar revenue, $22 billion is Google’s profit since 2008.
How Google makes money from Android market and how the android makes money are described here:
- The android has 80% market share.
- Integrate these androids smartphones with Google search and mobile applications like Gmail, Drive, and Maps.
- By not being Apple.
- Android puts a variety of Google services like Search, Google+, Drive, Play Movies, etc. directly in front of the users. Which in turn earns them money.
How Google makes money from Android:
Basically, there are 3 major sources for Google to generate revenue from its open source product Android:
1. Mobile Advertising
It is the main source of income when it comes to Android. Advertising is all that Google is living upon. Google paid Apple $1 billion to be the default search engine on iPhones and iPads in 2014. iOS users are more lucrative than Android users as they buy stuff through mobile advertising, but Android users are numerous than that of apple.
In September 2017, Google said there were 2 billion active Android devices in the world. Even per capita revenue from Android is less, but the quantity of android user overcomes its quality from Google. As to generate revenue from advertising, all you need is the maximum number of clicks. So Google made lots of money here.
Google makes money from the ads that are clicked by the user when searching via app or online. Google maintains an account for each of its users so that it can show him/her advertisement s per their preference which results in higher conversion ratio.
Apps are the second big source of money for Google. Google takes his portion of money from each app sale and in-app sales. Since there are millions of applications in its market, millions of dollars of revenue are generated from this.
As there are millions of Apps on the store, this revenue is significantly high.
Google takes a 30% cut out of every sale, offering in exchange the platform and some of the required infrastructure, including a cloud system for delivering notifications.
Also, developers of Applications have to pay a certain fixed amount to Google for publishing their application in the market.
Android apps generate less revenue as compared to the iOS apps, therefore iOS users are more valuable for an advertiser. Revenue from Apple apps is 70% larger than Android apps revenue, despite the fact that Android apps have twice the number of installs.
In Google I/O 2015, Google has stated that it has alone paid $7billion to developers as their part in advertising revenue. At a 70% developer share, the revenue from Android apps in 2014 was an impressive $10 billion.
3. Play store Media
Google makes a lot of money through its paid play store media like songs, books, movies etc. Giving an excellent platform to users to listen to music, watch videos, read books have generated dollars for Google. As they show advertisement in it and at the same time, In app purchases from these applications are significant as the number of users
Giving an excellent platform to users to listen to music, watch videos, read books have generated dollars for Google. As they show advertisement in between and at the same time, in-app purchases from these applications are significant as the number of users is so large. Paid music, movies, books, and subscriptions are just a tap away for hundreds of millions of users, so even with a low usage rate, it’s fair to assume that there’s steady money coming in from this source.
Paid music, movies, books, and subscriptions are just a tap away for hundreds of millions of users, so even with a low usage rate, it’s fair to assume that there’s steady money coming in from this source.