Earlier today iPhone5latest.com reported on Apple’s increase in the smartphone market in the U.S., which wasn’t a huge surprise given the smashing success of the recently released iPhone 4S. Now here’s even more good news for Apple (and bad news for Android): the Apple iPhone and the rest of the Apple products are doing a better job of generating income for Google than Android is.
Based on figures released in a settlement offer that google provided to Oracle this week, Google made over $2 billion dollars from iOS devices like the iPhone between the years of 2008 and 2011. That’s a $550 million average and a grand total of roughly $2.2. billion. By comparison, Google made less than $550 million from Android devices during that same time period–a truly small number.
Despite the competition between Apple and Google with the iOS and Android devices, the two companies do seem to be somewhat reliant on one another for profits. Google receives a lot of revenue from iOS devices through advertising on the device, while Apple seems to prefer Google as its search engine of choice on the iPhone. And iOS users tend to use both Gmail–a Google provided email service–and Google search far more than they use, say, Yahoo Mail and Yahoo Search. It’s clear that for iOS users, Google is simply a must have.
What’s scary about this staggering $2.2 billion number is it’s likely to climb. The iPhone was only beginning to reach its true earning potential during the years of 2008-2011, and now that the iPhone is available in more areas than ever before, the number of iPhone users is sure to increase which means that revenue number will also go up. It wouldn’t at all shock us to eventually see Google getting closer a billion dollars per year in revenue from Apple’s iOS devices.
Does this mean Android’s future is in doubt? Most certainly not, as Android still has a majority share of the U.S. smartphone market. However, it does mean that Android needs to start earning Google money pretty soon, as it wouldn’t make financial sense for Google to support Android longterm if the venture isn’t profitable.
And Apple? Well, it’s just one more area where they have bragging rights.