Originally Posted by sheff
Google could have paid the 4.5 billion. They could have paid 10 billion, so why drop out? They needed the patents more than apple to cover android from what I understand. Or is google betting they won't be sued by anyone? Im a bit confused on why the accepted defeat.
Google isn't going to make as much on Android as Apple will be making on iOS. Google gets money two ways from Android. The first is by licensing some apps to the carriers, such as maps. Those aren't free as is the OS itself to the manufacturers. But that's small beans. The second is in advertising. But both together are not huge cash flow machines. Google made a billion last year on these two sources. If there are two times as many Android devices, they could make twice that, and if Ads increase, as they are doing, they will make more.
But contrast that to Apple, which will sell a good $30 billion in iOS devices this year, likely twice as many next year, and increasing from there. Indeed, iOS device sales for Apple equal all of Googles sales for the year, from everything.
This is why Apple was so interested. I also wonder if those bids from Google, later on, were just their money, or that from Intel and whomever else was with them? Apple got theirs for $2 billion from what we read, and whether that was all they bid, or there's more we don't know about is something we MIGHT find out in the quartly report, as it just squeaked under the end of the quarter.