How google make money from android

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. 

Google made $31 billion in revenue from Android, according to a court filing by Oracle. As part of the lawsuit between Oracle vs Google, in January 2016 Oracle’s lawyer disclosed Android revenues of $31bn and profits of $22bn since 2008.

Source: Premium IT solutions

How Google make money from Android market and how the android makes money are described here:

  1. The android Gain 80% market share.
  2. Integrate these androids smartphones with Google search and mobile applications like Gmail, Drive, and Maps.
  3. By being not Apple.
  4. 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:

1. Mobile Advertising

It is the main source of income when it comes to android. Google paid Apple $1 billion to be the default search engine on iPhones and iPads in 2014. iOS users are more lucrative then android users as they buy stuff through mobile advertising, but android users are numerous than that of apple. 

In September 2015, Google said there were 1.4 billion Android devices in use worldwide. Even with a lower average revenue per user, the money that Google makes from ads shown on Android devices is probably significantly larger than the iOS revenue. 

Google makes money from the ads that are clicked by the user when searching via app or online. Each user has it’s unique account so the choices of ads for each individual is entirely different and up to the facts that what were they looking for through the web. This report is analysed by Google and is highly personal with respect to the user.

2. Applications

Apps are the second big source of money for Google. The company takes a cut from every sale app developers make on the Play Store. And it’s a big store, with over 1.5 million apps, out of which a big chunk are paid apps or apps that offer in-app purchases.

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.

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.

Google said during Google I/O 2015 that in 2014 alone it paid $7 billion to developers.  At a 70% developer share, the revenue from Android apps in 2014 was an impressive $10 billion.

Source: Android authority

3. Play store Media

Google makes a lot of money through its paid play store media like songs, books, movies etc. 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.

So, these were the tactics that Google uses in order to answer the query how Google make money from android. Do share the knowledge?

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