Google’s revenue from Android tops $31 billion

Rob Attrell

January 22, 2016 7:28am

Court cases between massive tech companies are nothing new, and the proceedings tend to drag on for years before a final verdict is given, especially if you consider appeals. Google and Oracle, the company responsible for creating the Java software that powers Android, have been fighting for five years over the revenue Google earns from its Android platform.

Luckily for the general public, and sometimes investors, these high-profile cases often end up revealing interesting details about companies that normally never end up as public knowledge.

In the latest courtroom battle, a lawyer for Oracle disclosed that Android has generated $31 billion in revenue, and $22 billion in profit for Google since the operating system made its debut. These figures take two sources of income into account: the ads Google displays on Android phones, and revenue from the Google Play Store.

The release of this information is contentious because it was supposed to be kept strictly confidential by Oracle’s legal team, as Google has chosen not to disclose what portion of its revenue comes from Android. Oracle has expanded past claims to include new versions of Android, and the total damages sought by Oracle could now top $1 billion.

The fight between Oracle and Google will continue in the courts, while analysts and pundits will debate what these financial figures mean for the future of Android.

  • Me

    Cough cough.. more than ios.. cough cough.

    • NuclearMayhem

      Except for the fact that’s lifetime profit.

      According to 2015 4th Quarter apple earned 11 Billion. now that includes all their branches but according to macrumors 63% of that was from iphone sales. Add another 8% for ipad sales and you’re looking at a total of 7.81 Billion in revenue. For 4 months!!! Not bad for Ios.

    • Columbo

      Good thing they raised those Canadian app prices. Heaven forbid they keep prices the same and just pay developers a tiny fraction more of that profit to make up the difference.

    • NuclearMayhem

      While I do understand why they did it, I’m not happy about it either. The chances of me tossing some money at some of the F2P games I play or the odd I’ll buy and play once games have gone way down now that there is a 40% markup from our dollar tanking.

      I expect it’s going to start hitting regular video games soon as well. If so then it might be a dry year this year for games.

    • Marc Palumbo

      Become an Apple investor and see if you want to lose profits because of a falling Canadian Dollar. I’m no Apple apologist nor do I like the company, but I do understand why they did it.

    • Mo Dabbas

      To be honest, I’m the kind of person who if didn’t like the price I don’t buy. The week demand will eventually force the developer to do something about the app.

    • It’s Me

      They aren’t a charity. Why would any intelligent person expect them to eat such differences in currency?

    • Columbo

      Differences in currency only ever seem to apply when they can make more money. Do you think they increased the salaries of their Canadian employees by 20% too?

    • It’s Me

      Umm, no, because they are paid in Canadian dollars so there is no currency difference to make up or account for. That’s pretty obvious. Really having to stretch for something to criticize here aren’t you? That or too young and inexperienced to understand pretty basic monetary concepts.

      And actually, I am employed by a US company and a portion of my bonuses are paid in US and converted to CAD, so yes I expect the same is true of any Apple employees that are paid in USD. They’d see an increase there (unless the portion is first in CAD and the converted to US). That’s the way currency exchange works.

    • Me

      I don’t think you know the different between hardware and software.

    • Vito R.

      Cough, cough, stay in school and work on your math.

    • Mo Dabbas

      That cough cough part made me laugh.

    • Me

      That’s fair.

    • It’s Me

      Math is hard I guess.

      $31B total since 2009 is barely even a tiny fraction of iOS.

      $22B in profit over 6 years. And the same release said they paid Apple $1B for one year of keeping google as the default search on iOS. Over the same 6 years, $6B would be a huge portion of their revenue and profits that they are handing over to Apple.

    • Brad Fortin

      Apple generated $32.2 billion in iPhone sales in the most recent quarter alone. 1 quarter. Google’s $31 billion was over 6 years, or about 24 quarters.

      Don’t forget iOS also runs on iPads, another multi-billion-dollar-a-year business.

    • Me

      I think you need to know the difference between hardware and software. IPhone sales are irrelevant. The software itself makes no money.

    • Brad Fortin

      Where do you think Google’s “Android revenue” comes from? It’s not from licensing Android, that’s free. It’s subsidized by hardware sales (Nexus and Pixel), ads, and app revenue.

      Apple’s “iOS revenue” is subsidized by hardware sales (iPhone and iPad), ads (including ad revenue sharing from Google), and app revenue.

      Apple’s hardware sales are overwhelming compared to Google’s, iOS accounts for 75% of Google’s ad revenue (meaning it’s at least 3 times more than Google’s ad revenue from Android, not to mention Google pays Apple at least $1 billion a year to be the default search on iOS), and, as we saw yesterday, the App Store brings in 75% more revenue than the Play Store.

      iOS is generating more of every kind of revenue than Android, both for Apple and for Google.