Google announces $1 billion in mobile revenue

Posted:
in iPhone edited January 2014
Google revealed in its third-quarter earnings call that the search giant is on track to bring in $1 billion this year in mobile revenue and expects continued strong growth in the mobile market.



Google Chief Financial Officer Patrick Pichette prefaced the metrics by emphasizing that the company was making the product specific breakdown available on a "one-time basis."



"I need to make it very clear that we will not be updating these numbers going forward. We are merely sharing them with you as a proof point of the great momentum we're experiencing in our emerging businesses," said Pichette.



"Mobile revenue is on an annualized run rate of over $1 billion," said Jonathan Rosenberg, senior vice president of product management at Google. Search queries from mobile devices have grown 5 times over the last couple of years, with most of the queries coming from Android phones, Rosenberg noted.



Google is placing a heavy emphasis on the emerging mobile market. Mobile "is the future of search in the internet," Rosenberg said. Recent smartphone sales data shows that the Android mobile operating system is outselling Apple's iOS.



The $1 billion news comes as a rare glimpse into Google's share of mobile profits. In late September, IDC reported that it expects Apple to match Google with 21 percent of the mobile ad market share by the end of the year. A Google spokesperson declined to respond with figures of its mobile ad sales for the year, but assured that Google was "experiencing fast growth" in mobile ad revenue this year. "If we are losing share, this market is growing faster than any one we've ever seen," said Jason Spero, director of mobile for the Americas at Google.



When Apple Chief Executive Steve Jobs announced the iAd mobile advertising program, data from JP Morgan revealed that projected iAd revenue for the second half of 2010 could give Apple as much as a 50 percent share of the emerging market. The iAd platform will receive a substantial boost in November when it comes to the iPad on iOS 4.2.



Yahoo Chief Executive Carol Bartz believes iAd will "fall apart" as Apple's high level of control drives away advertisers. Adidas is rumored to have canceled a $10 million iAd contract because Apple had exerted too much control over the process.



Not everyone's experience of iAd has been negative, though. Nissan and Unilever both told the Los Angeles Times in August that they were pleased with the initial performance of the iAd network.



"We feel pretty strongly that this is the way to capitalize on where the mobile Web is heading," Chad Jacoby, senior manager of Nissan's media operations, reportedly said.



For its part, Apple will report its quarterly revenues on Monday, Oct. 18 at 5 p.m. Eastern, 2 p.m. Pacific. Whether the company will also release specific figures for mobile revenue remains to be seen.
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Comments

  • Reply 1 of 66
    john.bjohn.b Posts: 2,716member
    I'll bet Larry Ellison has plans for a huge chunk of that.
  • Reply 2 of 66
    Actually, if I were an Android OEM like HTC or LG, I would feel kinda RAPED about now: Google gives me this OS, that I have to pay a licensing fee for to Microsoft, and I'm in danger of being sued by Oracle, and I am being sued by Apple, all so that Google can make a mint off of my labors. And then Verizon takes my work and messes with it? OMG! I am the BIGGEST LOSER!
  • Reply 3 of 66
    daveswdavesw Posts: 406member
    $1B in revenue. how much profit?
  • Reply 4 of 66
    Quote:
    Originally Posted by tomlawler View Post


    Actually, if I were an Android OEM like HTC or LG, I would feel kinda RAPED about now: Google gives me this OS, that I have to pay a licensing fee for to Microsoft, and I'm in danger of being sued by Oracle, and I am being sued by Apple, all so that Google can make a mint off of my labors. And then Verizon takes my work and messes with it? OMG! I am the BIGGEST LOSER!



    good one !!!

    you made my day...



    jokes apart, it is good to see that the company who is making operating system and giving it for free to mobile companies and making profit only from ads...
  • Reply 5 of 66
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by tomlawler View Post


    Actually, if I were an Android OEM like HTC or LG, I would feel kinda RAPED about now: Google gives me this OS, that I have to pay a licensing fee for to Microsoft, and I'm in danger of being sued by Oracle, and I am being sued by Apple, all so that Google can make a mint off of my labors. And then Verizon takes my work and messes with it? OMG! I am the BIGGEST LOSER!



    The vendors that jumped onto Android weren?t doing so well in the market anyway.
  • Reply 6 of 66
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by davesw View Post


    $1B in revenue. how much profit?



    If it?s stated that Apple and Google will have an equivalent percentage of the mobile market by the end of the year and we know that Apple charges a lot more for ads doesn?t that mean that Apple will be making more revenue in mobile ads than Google? I wonder if that aspect will be picked up by analysts and if AAPL stock will get a boost tomorrow because of Google?s stats.
  • Reply 7 of 66
    Quote:
    Originally Posted by solipsism View Post


    If it?s stated that Apple and Google will have an equivalent percentage of the mobile market by the end of the year ......



    I think that's a big 'if.' There are too many speculative variables.



    I am still not convinced about Google's revenues from ads (I don't doubt the fact that they get some revenues from licensing Android). Moreover, the fact that they do not mention segment operating profit is odd.
  • Reply 8 of 66
    newbeenewbee Posts: 2,055member
    Quote:
    Originally Posted by solipsism View Post


    If it?s stated that Apple and Google will have an equivalent percentage of the mobile market by the end of the year and we know that Apple charges a lot more for ads doesn?t that mean that Apple will be making more revenue in mobile ads than Google? I wonder if that aspect will be picked up by analysts and if AAPL stock will get a boost tomorrow because of Google?s stats.



    In all likelyhood Apple will continue to climb tomorrow, as it has since early October ... not because of Google, but because earnings report are just around the corner and expectations are that Apple will, once again, blow the "experts" away, imo. This is Apple's time to shine.
  • Reply 9 of 66
    bwahahaha, $1 billion in revenue!? didnt apple already give $1 billion to developers alone, solely with the %70 cut of profits made from apps.. you'd think all those brains at google could capitalize on their copy-apple-but-profit-on-apple-hating concept a bit more than that



    edit: i had the percentages switched around, thanks newbee
  • Reply 10 of 66
    dimmokdimmok Posts: 359member
    Ohhh good for you!!! And how was it?
  • Reply 11 of 66
    boogabooga Posts: 1,077member
    Quote:

    "Mobile revenue is on an annualized run rate of over $1 billion," said Jonathan Rosenberg



    Correct me if I'm wrong, but doesn't that mean that Google announced $250M in mobile revenue? An "annualized run rate" means that how much they'd make per year if this quarter's revenue keeps up, doesn't it? Or am I misreading?
  • Reply 12 of 66
    Quote:
    Originally Posted by solipsism View Post


    If it’s stated that Apple and Google will have an equivalent percentage of the mobile market by the end of the year and we know that Apple charges a lot more for ads doesn’t that mean that Apple will be making more revenue in mobile ads than Google? I wonder if that aspect will be picked up by analysts and if AAPL stock will get a boost tomorrow because of Google’s stats.



    GOOG will be pretty tough to top tomorrow. They were up 9% in after-hours trading with an earnings report that beat the street by around 15%.
  • Reply 13 of 66
    jwsjws Posts: 7member
    Quote:
    Originally Posted by Booga View Post


    Correct me if I'm wrong, but doesn't that mean that Google announced $250M in mobile revenue? An "annualized run rate" means that how much they'd make per year if this quarter's revenue keeps up, doesn't it? Or am I misreading?



    It could be even less, friend. Based on the "annualized" language, Google could also be projecting future growth percentages to whatever they have today.





    JWS
  • Reply 14 of 66
    And Apple is earning billions per quarter in mobile. 'Nuff said.
  • Reply 15 of 66
    one billion dollars in revenue is quite a sizeable figure, regardless of company
  • Reply 16 of 66
    newbeenewbee Posts: 2,055member
    Quote:
    Originally Posted by cwfrederick View Post


    bwahahaha, $1 billion in revenue!? didnt apple already give $1 billion to developers alone, solely with the %30 cut of profits made from apps.. you'd think all those brains at google could capitalize on their copy-apple-but-profit-on-apple-hating concept a bit more than that



    If I'm not mistaken the 1 billion given to developers come from the 70% that they are entitled to ... the 30% that Apple gets, Apple keeps.
  • Reply 17 of 66
    macnycmacnyc Posts: 342member
    Quote:
    Originally Posted by AppleInsider View Post


    Google Chief Financial Officer Patrick Pichette prefaced the metrics by emphasizing that the company was making the product specific breakdown available on a "one-time basis."



    "I need to make it very clear that we will not be updating these numbers going forward. We are merely sharing them with you as a proof point of the great momentum we're experiencing in our emerging businesses," said Pichette.



    If it was such a "proof point of the great momentum" why wouldn't you want to repeatedly brag about it instead of only breaking out the numbers once? Seems to me that the momentum going forward isn't all that and that Apple must be having a big impact on their numbers...
  • Reply 18 of 66
    cpsrocpsro Posts: 2,432member
    Quote:
    Originally Posted by AppleInsider View Post


    Search queries from mobile devices have grown 5 times over the last couple of years, with most of the queries coming from Android phones, Rosenberg noted.



    I found the above observation most interesting, since iOS devices are still said to well outnumber Android devices. It all makes sense, though, when the most frequent query is revealed: "How do you upgrade this thing?"
  • Reply 19 of 66
    Good for Google but continued expansion of search is gong to lead to a sea of unread ads.Look, if you or I go to 100 sites daily and see the same coca cola ad we aren't going to buy the effin coke 100 times when we go to the store.

    There are more Google ads online than people on earth. Google is raping their advertiser.
  • Reply 20 of 66
    Quote:
    Originally Posted by AppleInsider View Post


    Recent smartphone sales data shows that the Android mobile operating system is outselling Apple's iOS.



    Most readers misread those numbers. They show Android in the first half of the year outselling the iPhone part of iOS in the US, which is a different thing.

    Add the iPod touch + iPad and count total sales (not only US) and the iOS operating system is doing way better than Android.
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