Comments on: Android this week: Galaxy Note 2 pen tricks; Nexus 7 sales; New Acer tab

By: onekerato

onekerato — Sat, 27 Oct 2012 04:42:15 +0000

Apple recently said it has paid out $6.5 billion to app developers over all the years. Thus, Apple made 30/70*$6.5 bn = $2.8 bn from apps, between 2008-2012. Total number of apps downloaded to date is 35 bn apps for Apple and 25 bn for Google. If average price of iOS apps and Android apps was similar, Google would have made $2.8 bn*25/35 = $2 bn so far. But, since app monetization success on Android is around 1/4 to 1/2 of iOS, actual revenue realization for Google from android apps is likely to be $0.5 bn to $1 bn. That is since the Android app store launched. Even with a 3x increase in run-rate over last year, revenue from Android app sales this year is unlikely to be more than $0.5 bn or so. Put another way, app sales revenue is about 5-7% of Google’s total mobile revenue.

By: Einstein

Einstein — Sun, 21 Oct 2012 12:29:13 +0000

Lol, web math is different than real math.

By: yandom

yandom — Sat, 20 Oct 2012 16:18:40 +0000

Completely Completely wrong Calculation. You should refer to activated android 4.1 gadgets in play store. according to these statistics it reached nearly 1.8% of 500 million existing gadgets before advent of other phones and tablets with updated version 4.1 of phone and tablets. so it was nearly 9 million.

By: Dan

Dan — Sat, 20 Oct 2012 15:28:40 +0000

It looks someone does not know basic math or how to use a calculator. 3 million times 200 is 600,000,000.00 not 6 million as represented here.

By: Kevin C. Tofel

Kevin C. Tofel — Sat, 20 Oct 2012 14:51:11 +0000

I hear you, but you’re missing one point: what are people doing with the 3 million Nexus 7s? (And where did the 3m figure come from? ) It’s not unreasonable to think people are buying apps/content from Google Play, which generates revenues for Google, no?

By: buyillogical

buyillogical — Sat, 20 Oct 2012 14:40:57 +0000

“The company said its annual mobile run-rate jumped from $2.5 billion last year to $8 billion now and I suspect all those Nexus 7 slates are solid contributors here.”

You really shouldn’t assume such things. Later in the earnings call, they said that the majority of those revenues were from mobile ads.

It’s been estimated that Google sold 3 million Nexus 7 machines. 3 million times $200 is 6 million dollars. And since Google is selling these at cost, that nets them zero in profits.

Until Google releases actual numbers on sales and profits made from related sales of content and advertising, we should assume nothing. Or we should assume that the Nexus 7 is underperforming because if it were an actual success, Google would be shouting it from the roof tops.