According to figures that Google provided in to the court as part of Oracle’s patent and copyright infringement case, Google has earned less than $550 million from Android from 2008 to 2011.
While the reported $38 billion in total revenues for 2011, most of that came from paid search results that were provided to desktop computer users. $550 million from Android across four years essentially means that the software is just a small fraction of Google’s mobile revenue.
Google reported earnings of $1 billion in mobile revenues in 2011, so if the money isn’t coming from Android, where is Google getting the lion’s share of its mobile revenue?
That’s right, the majority of Google’s profits from mobile search, maps, and YouTube come from Apple’s iPhones, iPod Touches, and iPads.
Android may be able to claim wide usage by smartphone makers, but app sales still put the platform far behind iOS, which continues to be responsible for approximately 90 percent of mobile software revenues.
Despite the fact that Apple makes up a huge chunk of Google’s mobile revenue, the Mountain View-based company has continually challenged Apple’s dominance, souring the relationship between the two.
It’s widely known that Apple is working on its own mapping solution to replace Google Maps, which will be the first step in its move away from Google’s goodies. Apple’s shift away from Google will end up costing Google quite a bit in revenue, which clearly, Android profits are not going to compensate for.
Apple has also resisted allowing Google to force Safari users into web advertisement cookie tracking, and the Cupertino-based company has also developed its own iAd program, which, despite being unpopular, has gained 15 percent of all display ad revenue in 2011, further cutting into Google’s profits.