Google Makes Four Times More Money From iOS Than Android

Back in October, Larry Page proudly declared that Google's mobile products would generate $US2.5 billion in 2011. The Guardian, reports that Android accounts for a just a tiny fraction of that number. Google's iOS products contribute way more to Google's bottom line.

According to court papers filed in an upcoming legal battle with Oracle, Google pulled in just $US550 million from Android users between 2008 and 2011. (The Guardian crunched the numbers and figured out that this works out to roughly $US10 a year per Android handset.) Where's the rest of that $US2.5 billion? Much of it comes from iOS:

But while some people interpreted that to indicate Android revenue, it overlooked Google's deal with Apple, in place since the introduction of the iPhone in 2007, through which it provides maps and the default search engine for its iPhone, iPad and iPod Touch products, which run Apple's iOS software. Apple's chief executive Tim Cook said the company has sold 315m iOS devices, though nearly half of those have been sold in the past year.

All of those iOS devices means that Google actually earns four times as much from its deal with Apple than from Android. [The Guardian via BGR]



    Im pretty sure Gizmodo published an article recently stating that Apple wants to move away from Google. I cant imagine that happening with no detriment to the Apple experience. If it ends up like WP7 then people will drop off iOS like flies.

    PS: No doubt MotorMouth will have something to say but while WP7 has a slick interface, Bing Maps is crap, at least for Australia.

      New iPad already uses OpenStreetMap instead of Google i believe.

      Bing Maps has been good for me. Why do you think it is crap??

        I think that is actually iPhono

      haha too true. Every now and then I hit the "Search" key and give Bing a chance, but most of the time I have Google search on a homescreen tile because it's better, faster and more relevant than Bing. I love WP7.5 but Bing just isn't good enough!

        re: Bing Maps - I do prefer Bing Maps *as a map*, but it's far inferior when it comes to searching and POIs. Even in its desktop iteration, more often than not Bing will locate some obscure business in the USA rather than a nearby street address, which GMaps will have no problem finding for me.

        Not that I care since yesterday: HTC updated its Locations application with offline maps from TomTom, voice instructions and the ability to avoid toll roads. Can't wait to try it out!

        My experience has been quite the opposite. I get the most relevant results at the top in Bing, where I often have to scroll down to find them in Google. If I can't find something in a Bing search, Google is never any better. And every time I do go back to Google, usually just to slum it for a while, I notice it becomes more and more like Bing (especially image search).

        What I like about these new gen MS products, specifically Bing and Zune, is that they are more than just utilitarian. Zune feels like somewhere I used to go in the late 70s/early 80s to look for new music. Its as though it was made by someone with as deep a love of music as me. Similarly, Bing doesn't just offer you search, it presents you beauty and knowledge right on the front page, in the same way that flipping through an encyclopaedia might lead you to find something you weren't even thinking about at the time. Again, Bing feels like something created by sheeple with a real thirst for knowledge. By comparison, iTunes and Google are like an MS-DOS console. They have no soul.

          Searching with Bing on the PC is what I use by default, and it's fine for that. But for some reason the results when I use my phone aren't up to scratch. The exception is searching for a song - no need to use SoundHound or Shazam anymore! :--D

          Zune is excellent, I agree, and it's one of the reasons I gave WP7 a shot.

          As for image search: Bing had an edge for a little bit, but then Google leapfrogged them. In particular I use Google's size filter a LOT - if I want a big picture from Bing, I'll be lucky to get 2MP images. If I want a big picture from Google, I can specify 14 different size brackets from 0.3MP to 40MP and a bunch of other options.

      Can't agree there...

    What's wrong with Bing Maps? It has Local Scout, it loads faster, has turn-by-turn built in and looks cooler while it does it. As I've said previously, it was the difference between how Google Maps on an iPhone 4 and Bing Maps on a HTC 7 Mozart worked that made me choose WP7 in the first place. But I'm sure you've done similar side-by-side testing, right?

      Local Scout is improving ever so slowly, and actually using the application is great - but when I search for a nearby street address and routinely get redirected to a business halfway around the country or around the world, something's wrong!

        Agreed there are a few quirks.

        I've never had that problem at all. It works first time, every time for me.

          Hrm... just tested it again and it's definitely improving but still really needs work:
          Tried to find 22 Victoria Ave, Castle Hill (a commercial zone in Sydney) by searching for "22 Victoria Ave, Castle Hill"
 spot on
 suggested either Green Rd or Victoria Rd (wtf?). Upon selecting Victoria Rd, did not point out number 22.
          Maps application on my HTC Trohpy: found 22 Castlehill Ave, Greenvale, VIC 3059 (WTF!?)

          Other times, it finds the address on the phone no problem. But I never know if it's going to spaz out and give me something unexpected. Hopefully the improvements will keep coming: I tested a few addresses that it had trouble with in the past and it worked OK. I really like the interface but it's a tool and it has to be reliable!

            Green Rd becomes Victoria Ave, i.e. same road. Anyway, I see the difference - I'd never put in an address without an "nsw" at the end of it. Old staff duties habits die hard. Interestingly, if you change it to "22 victoria ave chatswood", with or without "nsw", it gives you a perfect location, even though no. 22 is actually in North Willoughby. So it seems that Bing Maps has taste (doesn't like Castle Hill), another thing in its favour.

            I'll give you an interesting example of where Bing search beats Google, while we're at it. Try searching for my band - Novakill. In Google you get a full page of results for us. That's great, except we're not the only band called Novakill in the world, as you'll find out easily enough if you search in Bing instead. We still get the top 3 results but you get a couple of links to the other guys on the front page as well, whereas even after 5 pages, there are only results for us on Google.

      I have a WP7 and a Galaxy S 2 in my hand. Turn on Bing/google maps on respective device. Google maps after about 5 seconds correctly says my location at 10 Dorcas St, South Melbourne (Not my home address) After 2 minutes Bing still says im about 250m away on Dodds St, South Melbourne.

      Test 2: Directions from current location to young and jackson. Galaxy S 2: Straight away said just up st kilda rd. WP7 waiting.... waiting..... waiting..... After about a minute I got what I was after (although still incorrect start location)

      Other observations:.I have had 2 WP7's and both have had inconsistent GPS signals. I could be driving on a freeway but the maps say on im on a parallel service rd No problem with google maps. Also there is no ability as far as I know to store bing maps. I have the inbuilt GPS application + all melbourne google maps stored on my phone.

      In my experience Android Google Maps > iOS Google Maps > Bing Maps

        What phone? GPS chips are highly variable. e.g. The GPS in my Samsung Wave sometimes took 10 minutes to give me a location. Literally 10 minutes. It was completely useless. Are both phones on the same network? Because data speeds are another big factor. That's why it was good to test side-by-side in a Telstra shop - it made it as close to a level playing field as possible, although Mozart was hardly a top-of-the-line WP7 phone.

        Of course, with Nokia Drive, I have every map for the whole of Australia stored on my WP7 phone. If Google stores maps, how long does it keep them for? i.e. Does it become like last year's Gregorys (Melways for you Mexicans)? I've experienced the GPS being a little bit off on occasion but never enough to get me lost. Its interesting that you'd think that was in the software, because I'm 99% sure its in the hardware, in that it is very unlikely that one mapping service has got its latitude and longitude out of whack, much more likely that the chip can't get a fix. Its like blaming Windows because USB 2 is slower than USB 3.

    I'd have to agree in general. While I haven't done side-by-side testing, Bing's INTERFACE is better, the actual results and experience using search and maps is still worse (particularly maps in Australia).

    I won't be leaving Google till something with similar reliability comes along, not just functionality.

      Bing search is noticably worse compared to google yeah, but I've found bing maps pretty good.

        True dat. I like Google for searching but the maps on Bing is far better in my experience. I never used to have a phone with navigation or GPS, so i would print out directions beforehand and found that when using Google maps directions it would often have incorrect street names and i'd get lost.

        I haven't had that problem with Bing Maps yet. And i love the little maps it prints. The directions are also very user friendly. It will tell you and landmark close to the turn offs such as a bank or Hotel to help you find your way

    I'm afraid I agree with MotorMouth, I tried all 3 major mobile OS side by side for all the things I do day to day. WP7 won on usability across all of them hands down. iOS had lots more sort of candy features, that you wouldn't ever use (Siri for example). But Microsoft nailed the core use cases, as such I went WP7. The fact that the equivalent phones were a factor of 4 different in price really just rammed home the point.

    MarketingLand has just published a reply to the Guardian piece.

      Hahaha nice.

      Wow, it looks like this Gizmodo story is based on a fluff and nonsense rumour then.

      Glad I wasn't the only one thinking this. I read the quoted text maybe 3 times and for the life of me, couldn't figure out how they went from that to "FOUR TIMES AS MUCH FROM IOS AS ANDROID!" The maths don't add up, there's no methodology or explanation how they came to that conclusion.

      Android is now selling even more than iOS and it can be reasonably assumed that they make roughly equal money for Google per device (if not more for Android due to Google Play store). It doesn't make one lick of sense that for comparable numbers of Android/iOS devices using Google search/maps, somehow the Apple ones make 4x as much per user.

      Then Giz just relinked it without any sort of journalistic scrutiny. What a joke.

    Hey Mario/Alex, when are we going to be able to subscribe to comments for notifications?

      When Giz implements DISQUS.... ie. Never.

    "Android accounts for a just a tiny fraction of that number"
    Since when is 22% a "tiny fraction" of 100%? Fucking sensationalist giz...

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