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

Posted:
in General Discussion edited January 2014
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.
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Comments

  • Reply 1 of 69
    shadashshadash Posts: 470member
    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.
  • Reply 2 of 69
    daseindasein Posts: 139member
    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?
  • Reply 3 of 69
    sflocalsflocal Posts: 5,727member
    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.
  • Reply 4 of 69
    This is why Nokia Phone 7 will fail.
  • Reply 5 of 69
    jacksonsjacksons Posts: 244member
    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.
  • Reply 6 of 69
    fuwafuwafuwafuwa Posts: 163member
    There is 10/90 rule for Android: every 10 good Androids, there are also 90 craps and turds activated.
  • Reply 7 of 69
    j.r.j.r. Posts: 27member
    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.
  • Reply 8 of 69
    hmurchisonhmurchison Posts: 12,341member
    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.
  • Reply 9 of 69
    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.
  • Reply 10 of 69
    cpsrocpsro Posts: 2,888member
    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!
  • Reply 11 of 69
    mdriftmeyermdriftmeyer Posts: 7,502member
    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.
  • Reply 12 of 69
    sipsip Posts: 210member
    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.
  • Reply 13 of 69
    iqatedoiqatedo Posts: 1,723member
    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.
  • Reply 14 of 69
    inkswampinkswamp Posts: 337member
    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.
  • Reply 15 of 69
    guch20guch20 Posts: 173member
    Could someone post the numbers Apple gave for their last quarter's revenue? I honestly forget what they were...
  • Reply 16 of 69
    cloudgazercloudgazer Posts: 2,161member
    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.
  • Reply 17 of 69
    modemode Posts: 163member
    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.
  • Reply 18 of 69
    iqatedoiqatedo Posts: 1,723member
    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!
  • Reply 19 of 69
    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.
  • Reply 20 of 69
    cpsrocpsro Posts: 2,888member
    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.
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