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Google: Mobile totals $1B annually
|15 октября 2010|
Google said its mobile business--including search, advertising and services--adds $1 billion to its revenue streams annually. And executives emphasized mobile is a growing business.
Jonathan Rosenberg, Google's senior vice president of product management, said during the company's third quarter earnings conference call that mobile is on an annualized run rate of $1 billion. "The people who are accessing our products and services through their mobile phones are adding $1 billion to our revenue streams," he said. "Clearly, this is the future of search on the Internet." He said mobile search for Google has grown five times over the past several years.
Google CEO Eric Schmidt, who joined the call for the Q&A portion, said that Android has grown "well past anything that I had ever hoped for." He said that Android "is probably the largest single platform play available in the market today" when one thinks about computation and location and other services Android enables. Schmidt said it is bigger than the PC market, and that "if you think of mobile as phone-plus-tablet, plus all the other things, we hope to become the leading platform in that space, and we're doing it with an open-source approach." Schmidt also added that Android customers use mobile search twice as much as other smartphone customers.
The goal of Android, he said, is for Google to make money on search and value-added services on top of the operating system. He did not provide a specific long-term profit target for Google, but said it will be "very lucrative."
Research firm Gartner said in September that Android will capture 17.7 percent of the smartphone market this year, slightly more than Research In Motion's BlackBerry's 17.5 percent share. Symbian will remain on top with 40.1 percent this year, while Apple's iOS will come in fourth with 15.4 percent of the market in 2010. However, by 2014, Gartner said, Android will be poised to overtake Symbian, commanding 29.6 percent of the market compared with Symbian's 30.2 percent. In 2014, Apple will have 14.9 percent of the market and RIM will capture 11.7 percent, Gartner predicted.
During its second quarter, Google posted solid results that beat Wall Street estimates. Google reported revenues of $7.29 billion, a 23 percent bump from the $5.94 billion the company reported in the third quarter of 2009. Excluding traffic acquisition costs, Google had revenue of $5.48 billion, higher than Wall Street consensus of $5.25 billion. The company's net income in the quarter was $2.17 billion, up 32 percent from $1.64 billion in the year-ago period.