Saw this before. The key words are....annualized and revenue.
They did not report mobile quarterly figures or costs and profits.
But. we can extrapolate:
$2.5 Billion annualized == $625 million quarterly mobile revenue.
Elsewhere in the earnings report:
$10 Billion total quarterly revenue
One of the costs broken out was TAC (Traffic Acquisition Costs,) -- these were $.25 for each $1 of revenue.
Assuming that TAC costs are consistent across mobile and non-mobile that means:
quarterly mobile revenue - TAC == $470 million
ANAICT, Gross margins were 40% of revenue - TAC
quarterly gross mobile profit == $188 million
No figures were given, so let's assume that 50% of mobile comes from Android phones (50 % from iPhones and all other smart phones)
quarterly gross mobile profit from Android == $94 million
No direct expenses/costs were given for mobile, Android development, etc.
If we assume Google has 10 people on the Android team @ $100,000 each, per year (Pay, office, equipment, benefits, etc.) or $.25 million per quarter
That would leave:
Android quarterly profit before taxes == $93.75 million
Obviously, these are just SWAG estimates (and I hope my math and logic are correct) -- but they are an attempt to put in context the headline of this article"
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Google announces $2.5 billion in mobile revenue/run rate == $93.75 million Android quarterly profit after taxes (30%)
$93.75 Million quarterly profits from Android is peanuts. Apple earns more selling smart covers.
First of all, you're not counting growth. Smartphones sales have been up 74% in Q2 2011 since the same quarter last year, while PC sales have had only a 2% growth. The smartphones market is about to explode.
Also, as I said in another message - because Androids do have a good share of the market, if Apple switches to another search provider, they'll be technically and from a brand perspective at a disadvantage (people say google it for a reason). Because of Android, Apple simply cannot create customer expectations in terms of the search engine used, like they did with other issues (e.g. Flash), quite the contrary I've seen people bitch about the lack of proper integration with other Google products.
And you know, Apple was thinking about switching to Bing. They haven't. You should really be adding the search traffic Google makes from iOS too ;)
Because that's what Android is about: control / keeping the competition focused on anything else but Google's Search. Quite a genius move if you ask me.
They did not report mobile quarterly figures or costs and profits.
But. we can extrapolate:
$2.5 Billion annualized == $625 million quarterly mobile revenue.
Elsewhere in the earnings report:
$10 Billion total quarterly revenue
One of the costs broken out was TAC (Traffic Acquisition Costs,) -- these were $.25 for each $1 of revenue.
Assuming that TAC costs are consistent across mobile and non-mobile that means:
quarterly mobile revenue - TAC == $470 million
ANAICT, Gross margins were 40% of revenue - TAC
quarterly gross mobile profit == $188 million
No figures were given, so let's assume that 50% of mobile comes from Android phones (50 % from iPhones and all other smart phones)
quarterly gross mobile profit from Android == $94 million
No direct expenses/costs were given for mobile, Android development, etc.
If we assume Google has 10 people on the Android team @ $100,000 each, per year (Pay, office, equipment, benefits, etc.) or $.25 million per quarter
That would leave:
Android quarterly profit before taxes == $93.75 million
Obviously, these are just SWAG estimates (and I hope my math and logic are correct) -- but they are an attempt to put in context the headline of this article"
---------
Google announces $2.5 billion in mobile revenue/run rate == $93.75 million Android quarterly profit after taxes (30%)
$93.75 Million quarterly profits from Android is peanuts. Apple earns more selling smart covers.