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Google Earns $2 Per Handset; Apple, $575

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Daniel

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While Apple generates more than $575 in profit for every iOS device, and according to estimates in 2007 Apple earned more than $800 on every iPhone sold through ATT, Horace Dediu reports that Android generated less than $550m in revenues for Google between 2008 and the end of 2011, earning only $1.70 per year, per Android device — explaining how Apple is sucking up two thirds of the profit in the mobile phone business. Dediu's starting point is a settlement offer Google made to Oracle of $2.8 million and 0.515% of Android revenues on an ongoing basis. His assumption is that those numbers represent Google's revenue from Android to date. 'If this is the case,' writes Dediu, 'We have a significant breakthrough in understanding the economics of Android and the overall mobile platform strategy of Google.' Of course profitability is not the only reason Google is in the mobile phone business. 'P&L considerations were not the only (or even at all) factors in investment for Google. Having a hedge against hegemony of potential rivals, having a means to learn and develop new business and having a role in defining the post-PC computing paradigm are all probably bigger considerations than profitability,' writes Dediu. 'My take is that [Android] is not a bad business. But it's also not a great one.

http://www.asymco.com/2012/04/02/android-economics/
http://tech.fortune.cnn.com/2011/07...ng-the-profit-out-of-the-mobile-phone-market/
http://tech.fortune.cnn.com/2012/04/02/asymco-google-makes-only-1-70-a-year-per-android-device/
 
11 comments
Yeah, apple products are made by people who get peanuts compared to the prices/profits Apple is selling for.

Its nothing personal just good business
 
Overjaculation makes $1 per handjob O.O

On topic:
Piggy backing on what z2ight said, why not charge a crazy amount? Slap an i in front of the name and jack up the price $500. Apple = Pure Genius
 
It's stupid to over charge by that much, they could drop it by 100$, save us all a wedge of cash and still make a stupid amount of profit, greedy a$$holes
 
@Bretteo it's not just the actual phone price. I mean, come on it's $649.00. They make more crap based on app/itunes purchases.
An android phone through Verizon for me is $199-299. The iPhone is about the same (w/contract).
 
Produce, Market, Popularize, and Sell the most sought products and make the software and media licensing and delivery proprietary to make residual earnings greater then initial earnings.

Add to the fact they can now control end of service life forcing you to purchase new hardware every so often because firmware or software compatibility.

Then we find out their interactive devices gather information that allows them to become market researchers for themselves and others with out our direct knowledge.

They were a victim of MS years ago and now they are just as underhanded as MS in many respects.

Anyone own a Zune???!!! lol

Yes Apple iProducts = Genius
 
Bretteo said:
It's stupid to over charge by that much, they could drop it by 100$, save us all a wedge of cash and still make a stupid amount of profit, greedy a$$holes
Click to expand...

When you charge more, people are willing to pay more because being capable of affording an item that is seen as being too expensive for the average Joe is a status symbol showing that you're above average, especially in America.
 
You seem to be forgetting one slight thing here.

Google doesn't make handsets, it doesn't sell handsets, it provides an OS which it then earns from due to licensing.

Apple make their handsets AND the OS, they then sell their handsets AND the OS.

So of course they make more money per handset.

The journalist who brought this topic up is severely retarded.
 
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