Android isn’t as profitable for Google as Apple’s rival iOS is. That’s according to the latest information made available with regard to Google’s mobile revenues.
Despite the company’s $2.5 billion annual run rate for Google’s mobile revenues, it appears that Google has earned less than $550 million from Android between 2008 to 2011.
Two weeks ago, Macquarie Capital estimated that in 2011 Google took in more than $1.3 billion in paid search revenue from iOS devices alone.
“In other words,” says Greg Sterling of Search Engine Land, “Google made more (top-line) revenue in one year from the iPhone than it did in three years from Android handsets.”
If Google activates 800,000 Android devices daily it would mean 292 million devices activated per year. Using the $10 per user, per year revenue formula that would translate into $2.92 billion in global Android revenue over the course of a hypothetical year.
Although the numbers remain somewhat fuzzy and inconclusive, mobile is obviously a bigger-than-ever part of Google’s business and will be critical to the company’s short-term and long-term growth strategies.