Report: Google earns more revenue from iPhone than Android
Google (NASDAQ:GOOG) earned less than $550 million in revenues from its Android mobile operating system between 2008 and 2011, based on figures provided in its ongoing patent and copyright infringement battle with Oracle.
Oracle acquired Sun Microsystems and its Java programming language in 2009; a suit filed in 2010 alleges approximately one-third of API packages in Android are "derivative of Oracle's copyrighted Java API packages" and related documents. According to a court filing submitted late Tuesday, Google proposed to settle the case, stating that if Oracle succeeded in proving patent infringement, Google would not fight over damages provided Oracle agreed to its figures. Google offered to pay Oracle roughly $2.8 million in damages on the two patents remaining in the case, covering the period through 2011--for future damages, Google offered to hand over 0.5 percent of Android revenue on one patent until it expires in December 2012 and 0.015 percent on a second patent until it expires in April 2018.
Google states that the damages figures matched numbers calculated by a court-appointed expert in the case. Oracle declined Google's offer, contending it is too low. "Oracle cannot agree to unilaterally give up its rights, on appeal and in this court, to seek full redress for Google's unlawful conduct," the company said in the filing. The Google/Oracle trial is set to begin April 16.
In January, Google announced that it has activated more than 250 million Android devices worldwide, up from 190 million in October 2011. The Guardian reports that based on the figures supplied by Google to Oracle, the company derives less than $10 per Android device each year. "The $2.8 million offer, at a combined rate of 0.515 percent, suggests that Android's total revenue from the launch of handsets at the end of 2008 through to the end of 2011 was $543 million," the report states.
The Guardian also calculates that Apple (NASDAQ:AAPL) iOS devices, which use services like Google Search and Google Maps, brought Google more than four times as much revenue as Android handsets in the same period. In October 2011, Google CEO Larry Page revealed Google was "seeing a huge positive revenue impact from mobile, which has grown 2.5 times in the last 12 months to a run rate of over $2.5 billion." That number presumably includes revenues derived from Google products and services running on iPhones and iPads; Apple has now sold more than 315 million iOS devices.
Apple's new iPhoto application, introduced earlier this month in conjunction with its LTE-capable iPad tablet, leverages mapping information culled from Apple's own servers, not Google's Maps. Citing sources within Google, 9to5Mac reported that Apple's mapping contract with Google expires at the end of 2012, adding Apple has not renewed the partnership for 2013. Apple last renewed its Google Maps agreement in mid-2011. Onlookers have long expected Apple to roll out its own mapping and navigation services.
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