CNN: Android to bring in $100 billion payday for Google

by swsw007 on 2010-10-12 16:18:24

CNN columnist David Goldman published an article pointing out that Android will become Google's next predictable profit point. It is predicted that by 2013, Android will bring in $4 billion in revenue for Google. Google CEO Eric Schmidt stated last month that he expected Android to become a business with $10 billion in revenue. The article wrote: Market analysts expect that in the future, Google's annual revenue will maintain an increase of approximately 15%, but compared to the peak period's annual revenue increase of 40%, it has fallen short significantly. Due to concerns over the shrinking room for growth in Google's performance, Google's stock price has dropped by 15% since the beginning of the year. In recent years, through a series of self-developed projects and acquisitions, Google has successively ventured into social networks, communications, and media industries, but still hasn't found a new profit point. Facebook has posed a certain threat to Google's main business of online advertising. However, the open-source Android operating system has already made Google one of the largest smartphone operating system providers globally. Gartner predicts that by the end of the year, Android will occupy 17.7% of the global mobile device market share, becoming the second-largest smartphone system (after Symbian). Another market research company, IDC, also predicts that Android's market share will surpass iOS. Just a year ago, Gartner's statistics showed that Android's market share in 2009 was only 3.9%, far lower than systems like Windows Mobile. The success of Android should not be overlooked by investors. Its possible profit points include built-in mobile search and electronic markets, as well as the AdMob mobile advertising platform. Analyst Sandeep Aggarwal from Collins Stewart estimates that by 2013, Android will generate $4 billion in revenue for Google. For a company whose revenue reached $24 billion last year, this can indeed provide a supplement to Google's revenue growth. Google CEO Eric Schmidt stated last month that he expects Android to become a business with $10 billion in revenue. "If there are one billion users using Android, how could you think we wouldn't be able to make money from this business?" Android's tremendous success has already made competitors uneasy. Oracle, Microsoft, and Apple have all criticized or filed lawsuits regarding Android's patent issues. Nowadays, 200,000 new Android phones are put into use every day, and Android will soon enter tablets and home appliances. The Android ecosystem is about to take shape, which will bring enormous benefit space for Google.