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Google posts record $9B in revenue as daily Android activations grow to 550K

post #1 of 70
Thread Starter 
During an earnings call on Thursday, Google reported record quarterly revenue of more than $9 billion and reached a new milestone of 550,000 Android device activations per day, up from the 500,000 a day it disclosed in June.

Google CEO Larry Page posted his opening remarks for the company's second quarter earnings call on his Google+ page, noting that revenue increased 32 percent to $9 billion, setting a quarterly record.

The Mountain View, Calif., company also revealed that Android device activations have reached a daily figure of 550,000, with a total of 135 million devices activated. That's up from 500,000 per day in late June, remaining in line with the 4.4 percent weekly growth that Android chief Andy Rubin disclosed over Twitter.

By comparison, as of June, Apple had sold a total of 200 million iOS devices. Last October, CEO Steve Jobs said the company had reached daily iOS activations of 275,000. However, the company has declined to continue updating the metric, even as activations on Google Android have continued to climb.


In terms of smartphones, the Android platform surpassed the iPhone last year and has continued to widen its lead over its rival. According to comScore, Google held 38.1 percent of the smartphone market in the U.S. last quarter, compared to Apple's 26.6 percent.

Apple, however, still maintains the lead in terms of app downloads. Google said on Thursday that total Android app downloads had reached 6 billion, whereas Apple recently reached the 15 billion download mark.

Shares of Google jumped up over 12 percent in after hours trading in light of the company's favorable earnings report, overcoming a loss of 1.73 percent during the day on Thursday.

Investor reaction was markedly different from the response to the search giant's earnings results in the first quarter of calendar 2011. After Page was conspicuously absent on his first earnings call as CEO and operating expenses leapt up, Google shares tumbled 17 percent from April to June, before bottoming out at $474.88. In April, Page took over for Eric Schmidt as the company's CEO.

For its part, Apple will release its own quarterly results on Tuesday, July 19 after the market close. AppleInsider will have full in-depth coverage.
post #2 of 70
Every time Rubin tweets this crap he sounds like a prick, but Android is growing fast. Sales data would be nice, but probably less flattering to Android.
post #3 of 70
Quote:
Originally Posted by AppleInsider View Post

Google reported record quarterly revenue of more than $9 billion and reached a new milestone of 550,000 Android device activations per day

What, exactly, do these two things have to do with each other though?
post #4 of 70
While the number of activations sounds impressive, given the junk build quality of a lot of Android phones, I wonder how many of these activations are from previous Android users versus truly "new" customers. I suspect a big grey area here.
post #5 of 70
This is why Nokia Phone 7 will fail.

"Apple should pull the plug on the iPhone."

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post #6 of 70
Quote:
Originally Posted by AppleInsider View Post

However, the company has declined to continue updating the metric, even as activations on Google Android have continued to climb.

Translation: As per Apple's usual policy, now that Apple is no longer the leader in this particular metric, it has determined that the metric is no longer important.
post #7 of 70
There is 10/90 rule for Android: every 10 good Androids, there are also 90 craps and turds activated.
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post #8 of 70
Quote:
Originally Posted by Jacksons View Post

Translation: As per Apple's usual policy, now that Apple is no longer the leader in this particular metric, it has determined that the metric is no longer important.

Pretty sure the "devices activated per day" was a metric Android came up with.
post #9 of 70
Quote:
In terms of smartphones, the Android platform surpassed the iPhone last year and has continued to widen its lead over its rival. According to comScore, Google held 38.1 percent of the smartphone market in the U.S. last quarter, compared to Apple's 26.6 percent.

Note...the comparison is with the Android platform against a single iOS component which can be a bit misleading.

For those that care about app development it's more important to consider Android vs iOS which changes the results considerably when you add in the iPod Touch and iPad numbers.
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post #10 of 70
Quote:
Originally Posted by fuwafuwa View Post

There is 10/90 rule for Android: every 10 good Androids, there are also 90 craps and turds activated.

That sounds accurate


Quote:
Originally Posted by Jacksons View Post

Translation: As per Apple's usual policy, now that Apple is no longer the leader in this particular metric, it has determined that the metric is no longer important.

Nailed it.
post #11 of 70
At $100 per activation in licensing fees paid by Google to Apple, that's $55M per day or $20B per year of pure profit for Apple!
post #12 of 70
When Apple crushes the most ludicrous estimates from Wall Street, next Tuesday, they will quickly turn back to Google and start peeling back the activation valuation of each Android device to that of the iOS device.

It will explain how come Google's quarterly revenues will never reach that of Microsoft let alone those of Apple or HP.
post #13 of 70
Quote:
According to comScore, Google held 38.1 percent of the smartphone market in the U.S. last quarter, compared to Apple's 26.6 percent.

Devices running Android OS hold 38.1 percent - Google doesn't - of the smartphone market because Google doesn't really manufacture any phones (the Google phone doesn't really count).

The advantage Android has is the heavy discounting by networks, the 2-for-1 offers and maybe other incentives, especially cheaper plans. I also wonder how many Android phones are sitting in drawers without being turned-on as many have been sold/given to non-geeks, some of whom must have smashed them under their boots out of sheer frustration.

In the UK people tend to upgrade fairly regularly -- a husband and wife having two plans (if they're savvy enough) will usually stagger their contract start dates so that at least one phone gets updated every year. I upgraded Nokia phones every year, but since the iPhone was introduced I've only had two models, both purchased outright -- the original iPhone which I still have with a PAYG SIM and my every day 3GS. If the 3GS runs iOS5 as well as the iPhone 4, I may not bother getting iPhone 5.
post #14 of 70
Quote:
Originally Posted by dasein View Post

What, exactly, do these two things have to do with each other though?

Would someone please remind me, just how Google makes money from Android (genuine query)?

In the good old days, when Apple enjoyed less than the dominant position in its market, we came here to discuss all things Apple in a very amiable atmosphere. Hopefully we'll get back to times like that. It seems as though the trolls think that unless Apple is top of its market, that the fanbois (yuck) cannot be truly happy. Well, news for them, this was once a much happier place.
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post #15 of 70
Quote:
Originally Posted by Jacksons View Post

Translation: As per Apple's usual policy, now that Apple is no longer the leader in this particular metric, it has determined that the metric is no longer important.

Translation: I'm pointlessly criticizing Apple for doing something every company does.

And if you disagree, show me an Andy Rubin tweet bragging about the actual profits they make from Android.
post #16 of 70
Could someone post the numbers Apple gave for their last quarter's revenue? I honestly forget what they were...
post #17 of 70
Quote:
Originally Posted by inkswamp View Post

Translation: I'm pointlessly criticizing Apple for doing something every company does.

And if you disagree, show me an Andy Rubin tweet bragging about the actual profits they make from Android.

It's slightly different - Apple actually does want to sell more phones than Google, though it wants to make fat profits doing it - Google doesn't care about making profits from phones, it just wants to own a huge platform so it can launch new services like Google+, etc.

Fpr Google the only metric that matters is marketshare, for Apple all the metrics matter - though to different degrees.
post #18 of 70
Quote:
Originally Posted by sflocal View Post

While the number of activations sounds impressive, given the junk build quality of a lot of Android phones, I wonder how many of these activations are from previous Android users versus truly "new" customers. I suspect a big grey area here.

Keep reaching... just a little more... just a liiiitle bit more... your almost there...


Meanwhile, back in reality - history begins to repeat for Apple.
This time thou, they have all the monies they could ever want in the bank - however, have lost all goodwill, trust and loyalty from, well, every industry known to man it would seem.
Hope that fickle consumer market stays strong while the economy tanks.

Will be interesting to see how this plays out.
Fingers crossed that Apple starts playing nice again.
post #19 of 70
Quote:
Originally Posted by Mode View Post

Keep reaching... just a little more... just a liiiitle bit more... your almost there...


Meanwhile, back in reality - history begins to repeat for Apple.
This time thou, they have all the monies they could ever want in the bank - however, have lost all goodwill, trust and loyalty from, well, every industry known to man it would seem.
Hope that fickle consumer market stays strong while the economy tanks.

Will be interesting to see how this plays out.
Fingers crossed that Apple starts playing nice again.

Okay - and on what authority do you make your assertions. FOFW!
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post #20 of 70
Quote:
Originally Posted by Suddenly Newton View Post

This is why Nokia Phone 7 will fail.

Last time I checked the enemy here is Android, not Windows Phone. Also I think Windows Phone is a very fluid and nice experience and I think in the next 3-4 years, the battle will be right back to who its always been between: Microsoft vs Apple.
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post #21 of 70
Quote:
Originally Posted by IQatEdo View Post

Would someone please remind me, just how Google makes money from Android (genuine query)?

Mostly advertising revenue. I thought everyone knew that.
post #22 of 70
Quote:
Originally Posted by Cpsro View Post

Mostly advertising revenue. I thought everyone knew that.

Just checking!
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post #23 of 70
Quote:
Originally Posted by dasein View Post

What, exactly, do these two things have to do with each other though?

They both occurred in a earnings conference today. It's called news. Websites report it.
post #24 of 70
Quote:
Originally Posted by IQatEdo View Post

Would someone please remind me, just how Google makes money from Android (genuine query)?

Google's business plan (genuine lulz):
1. License Android
2. ???
3. Profit!

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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post #25 of 70
Quote:
Originally Posted by IQatEdo View Post

Okay - and on what authority do you make your assertions. FOFW!

Millions of headlines, thousands of lawsuits, bitter & angry clients, even more bitter and angry peers. But mostly the millions of headlines.

Is this the only site you read?
post #26 of 70
Quote:
Originally Posted by Mode View Post

Millions of headlines, thousands of lawsuits, bitter & angry clients, even more bitter and angry peers. But mostly the millions of headlines.

Is this the only site you read?

millions of iPads, millions of iPhones, millions of MBPs, millions of MBAs. Yep, people sure are angry that Apple keeps making them spend money.
post #27 of 70
Quote:
Originally Posted by Mode View Post

Millions of headlines, thousands of lawsuits, bitter & angry clients, even more bitter and angry peers. But mostly the millions of headlines.

Is this the only site you read?

In your universe perhaps.
In the fact-based world we live in, Apple has the highest customer satisfaction ratings (in actual polls), and tops the list of most admired companies every year.
Enjoy your fantasy world tho'.
post #28 of 70
Quote:
Originally Posted by guch20 View Post

Could someone post the numbers Apple gave for their last quarter's revenue? I honestly forget what they were...

Create a customer based in the millions, target them for advertisers, increase search traffic to google.com's search engine through mobile means, increase traffic through use of mobile google services, offer music beta service, movies, video download services, etc. etc.

The OS is free with no licensing fees. Even the source code is free.

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"Like I said before, share price will dip into the $400."  - 11/21/12 by Galbi

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post #29 of 70
Quote:
Originally Posted by Suddenly Newton View Post

Google's business plan (genuine lulz):
1. License Android
2. ???
3. Profit!

Step 2:

Get a hundred million people onto your platform, tied into your mail, tied into your search, tied into your social sites, providing data to your localization db, viewing your ads, etc.

Android isn;t Google's product, Android users are Google's product.
post #30 of 70
Quote:
Originally Posted by Cpsro View Post

Mostly advertising revenue. I thought everyone knew that.

It also helps push other Google services such as gmail, google maps, google places, google+, etc which in turn means even more ad revenue.

The other thing it does is makes it harder for Microsoft to compete.
post #31 of 70
Quote:
Originally Posted by Galbi View Post

Create a customer based in the millions, target them for advertisers, increase search traffic to google.com's search engine through mobile means, increase traffic through use of mobile google services, offer music beta service, movies, video download services, etc. etc.

The OS is free with no licensing fees. Even the source code is free.

I think you might have meant to post this in reply to someone else, since it has nothing at all to do with what I was asking for.
post #32 of 70
Quote:
Originally Posted by Mode View Post

Keep reaching... just a little more... just a liiiitle bit more... your almost there...


Meanwhile, back in reality - history begins to repeat for Apple.
This time thou, they have all the monies they could ever want in the bank - however, have lost all goodwill, trust and loyalty from, well, every industry known to man it would seem.
Hope that fickle consumer market stays strong while the economy tanks.

Will be interesting to see how this plays out.
Fingers crossed that Apple starts playing nice again.

Yep.. no one likes Apple. They've lost "goodwill, trust and loyalty" from every industry known to man. The proof.. few industry leaders created a consortium and bought Nortel Patents just to keep Apple from buying it. In fact, no one wanted to partner with Apple during the bid because Apple " have lost all goodwill, trust and loyalty".... oh wait.. that wasn't Apple! that was Google
post #33 of 70
Quote:
Originally Posted by Galbi View Post

The OS is free with no licensing fees. Even the source code is free.

Not according to Microsoft. Unless all these Android phone makers are paying Microsoft with monopoly money. And Oracle may soon get a piece of the pie.
post #34 of 70
Quote:
Originally Posted by Mode View Post

Millions of headlines, thousands of lawsuits, bitter & angry clients, even more bitter and angry peers. But mostly the millions of headlines.

Is this the only site you read?

Nothing new for Apple that hasn't been happening for the past 20 years. It's just that Apple is now the biggest tech company in the World. So everything they do, good or bad, now ends up being headline news.
post #35 of 70
Quote:
Originally Posted by NasserAE View Post

Yep.. no one likes Apple. They've lost "goodwill, trust and loyalty" from every industry known to man. The proof.. few industry leaders created a consortium and bought Nortel Patents just to keep Apple from buying it. In fact, no one wanted to partner with Apple during the bid because Apple " have lost all goodwill, trust and loyalty".... oh wait.. that wasn't Apple! that was Google

Game, set, match.
post #36 of 70
Quote:
Originally Posted by Cpsro View Post

Mostly advertising revenue. I thought everyone knew that.

To be more accurate, Google makes money selling the personal information of their customers to advertisers. Which is how they make money with Android. Android users are their customers.
post #37 of 70
Quote:
Originally Posted by hmurchison View Post

Note...the comparison is with the Android platform against a single iOS component which can be a bit misleading.

A single iOS component? Please explain
post #38 of 70
Quote:
Originally Posted by DavidW View Post

To be more accurate, Google makes money selling the personal information of their customers to advertisers. Which is how they make money with Android. Android users are their customers.

Google's "customers" are the advertisers. Android users are nothing more than the product.
post #39 of 70
Quote:
Originally Posted by Mode View Post

Millions of headlines, thousands of lawsuits, bitter & angry clients, even more bitter and angry peers. But mostly the millions of headlines.

Is this the only site you read?

On tech blogs, maybe. Not in the real world.

You can't reach conclusions based on the reaction on the internet. Only opinionated people post things on the Internet, and usually represent the extreme outliers of feelings people have toward a given issue. Think about it: for every person who posts a fanboy rant, 10 people likely read the same article and didn't care enough to post. And a thousand people didn't even read the article.

In the real world, everyone still loves Apple, save for the people who hate anything popular. The people who label Apple users hipsters trying to be cool, even though they're trying to be cool by not doing the "cool" thing. I've been an Apple user since the early 90s, am either wearing a suit for work or some grubby ensemble involving flannel, old jeans, and a grubby hat for working outdoors/camping and have never even considered wearing skinny jeans or drinking a latte. Real hipster here.
post #40 of 70
Quote:
Originally Posted by Suddenly Newton View Post

Google's business plan (genuine lulz):
1. License Android
2. ???
3. Profit!

Isn't step 2 "collect user data and sell it to the highest bidder"?

Oh wait, that's right, Google respects your privacy. Yeah. And everything is "opt-in" (just don't try using their services by not signing your soul away).
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