updated 02:00 pm EDT, Wed May 16, 2012
Asymco analyst puts Google's Android earnings at $2.75 per device
An analyst at Asymco has posted an analysis of Google's revenues from its Android operating system, estimating that Android nets Google approximately $2.75 in ad sales per device every year. The figure is dwarfed in comparison to Apple's take from iOS devices.
Based on Android's install base, the analysis estimates approximately $330 million in app sales through the Android market. Taking into account the revenues spun off to network operators, OEMs, and developers, as well as Google's operating expenses, about 34 percent of revenues from Android contribute to Google's earnings before taxes and depreciation. This equates to approximately $2.75 per Android device each year.
As Android's market share is expected to continue growing, the revenues Google generates per device are likely to figure greatly in the search giant's future earnings. Google's earnings from Android are important beyond the company's ongoing competition with Apple; they are the the subject of damage calculations in a court case in which Oracle alleges it is entitled to compensation due to Android's infringement on Oracle's intellectual property rights.