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Summary:

It’s too bad that Google’s business model isn’t to charge for the Android operating system — because it’s selling like hotcakes.

Google (…

Android mascot wearing utility belt
photo: Flickr / Roodee

It’s too bad that Google’s business model isn’t to charge for the Android operating system — because it’s selling like hotcakes.

Google (NSDQ: GOOG) CEO Eric Schmidt told The Guardian in an interview that the company is now activating 160,000 Android phones a day, up from only 100,000 a day in mid-May — indicating a monthly growth rate of 60 percent. At this rate, *Google* is activating 4.8 million devices a month and nearly 15 million a quarter. The trajectory is astounding considering that it was activating only 60,000 a day in February, but still pales in comparison to *Apple,* which reported 600,000 iPhone 4 orders in a single day last week.

Google will have to sell a lot of phones for its business model to be successful. Rather than selling the OS to handset manufacturers, like Microsoft (NSDQ: MSFT), or selling the hardware and software as a package, like RIM (NSDQ: RIMM) and Apple (NSDQ: AAPL) do, it is giving the platform away for free and banking on making money through advertising in its related products, such as search. It’s also sharing those revenues with both carriers and handset makers.

Outside of handset sales, Schmidt also said Android has made progress with the number of applications it supports. Schmidt: “We’ve also seen a growth in the number of apps available for Android

  1. It doesn’t pale in comparison to iPhone sales. Those 600k iPhones were on launch day. Meanwhile, Google is activating $160k Android devices *every* day. Big difference.

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  2. Google is reaping the benefits of its hard work which it has put in Android. But still it is far behind iPhone sales.
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  3. microsoft’s business model will fail unless it has 90 percent market share. Imagine MS selling windows OS for 20 $$ each. So if assumed they will sell 30 million next year(highly doubtful) they will make at most 30*20=600 million dollars, a drop in the bucket for a company making more than 60 billion dollars in annual revenues. But for google to match that, all they need to do is sell 1.2 million nexus one yearly and they make 1.2 million * 500=600 million. I think nexus one will sell atleast 1.2 million yearly.

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  4. The bigest problem in Android Market is that in some countries we can’t buy any payed app, because Google Checkout isn’t available.

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  5. I read so many posts regarding Apple Iphone and the Android market. The interesting thing is that the comparison is 1 device (iphone) up against upwards of 20 devices (Android phones on all carriers). It takes the android phones to sell multiple devices on multiple carriers to show numbers like this while Apple shows its numbers with 1 device. Hmmm, I wonder how the numbers would look if the iphone was indeed sold on all carrier networks.

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  6. That would only bump the numbers up in the US and a few other countries. The iPhone is sold on multiple carriers in other countries. And I suspect it will be here at some point too. It’s only been 3 years and if I remember right ATT’s exclusivity deal was for 5 years?

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