Oracle: Google Makes $10 Million from Android Everyday
By on January 18th, 2012

Oracle is one of the few tech giants which isn’t directly competing in the smartphone market but is still involved in patent wars with Google over Android. Oracle had sued Google over the use of Java IP in Android back in 2010, and was demanding billions of dollars in damages and licensing fees. Over the last couple of months, it seemed like it was fighting a losing battle, as some of its patent claims were rejected by the USPTO.

However, Oracle isn’t giving up just yet. According to FOSSPatents, Oracle is pressing the court to set an early hearing for its copyright claim against Google, to get an injunction as soon as it can.

Some new information has surfaced which reveals how Oracle valued Google’s Android business in its lawsuit.

Currently, close to 700,000 Android devices are activated every day. According to Oracle, each day’s worth of Android activations generate nearly $10 million in mobile advertising revenue for Google.

This translates into approximately $3.65 billion dollars in mobile advertising revenue for Google through Android alone, according to Oracle. Oracle’s figures are based on an estimated annual advertising revenue of $14 per Android user, and this is just the directly generated revenue. The tech giant further states that:

“This revenue does not even include all the other value Android generates for Google, ranging from Android Market revenue, to other Android-related services, to ensuring that Google will not be locked out of the mobile business, to lucrative relationships with manufacturers of myriad devices on which Android can and does run, to the inordinately valuable access Android provides to customers for its new social network service, Google+. Indeed, Android has enabled Google to wield such power with regard to search and other services that its Android distribution and licensing practices — far from the ‘open’ practices Google has proclaimed it lives by — are under investigation by competition law agencies in the United States, Europe and elsewhere.”

These numbers seem to be inflated and based on flawed estimates. We should see more details on how much money Google actually makes from Android once the trial starts. The more Google makes from Android, the more Oracle will claim in damages and license fees.

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Author: Pathik Google Profile for Pathik
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Pathik has written and can be contacted at pathik@techie-buzz.com.

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