Thanks to declassified information, the fact that Google has acquired a profit of 31 billions dollars since the existence of Android, became available to public. Thus the net profit of the company is 22 billions dollars. So in what way does Google make money on this OS, if it is,in its turn, absolutely free?
The answer is utterly simple. An income of the company is based, first of all, on the mobile applications sale and mobile advertising. Therefore we are going to focus on this aspects more specifically.
In case of Android platform, the main sourсe of profit is mobile advertising. Moreover, it is well known, that the corporation acquired from Apple company ( the price was 1 billion dollars) the right for Google to be a default search engine in their gadgets. It has happened in 2014. What does it bring to Google? The fact that the search engine can also be a concentration of advertising.
It should be taken into account, that the users of the “apples” company bring remarkably more profit, because according to statistics data, their own income is bigger in comparison with the income of Android users. That is why they are more ready to buy games, applications and its additional functions.
Still in the context of advertising income, Google exceeds the Apple company ones.In 2014 the company announced, that there are about 1.4 billion of devices on the Android platform worldwide. And this proves that advertising in this OS brings more profit because of the quantity and popularity of gadgets around the world, working under its control.
As to advertising itself, it is literally everywhere: within the search engine and services of the company like Gmail, Youtube, Google Drive, Maps and others.
On the second place in the list of the income resources of Google from OS Android are mobile applications. The corporation gets a certain percent from each purchase, which took place in the Google Play space. And it is impossible to ignore the fact, that there are approximately 1,5 billion of applications in the “store”
The majority of them are paid, the same time, each of them includes inner purchases. The tribute that Google gets from each acquirement is 30 %.
It appears that the income of the Google company is bigger than Apple’s. But the income from the sale of applications, on the contrary, is less than the main contestant has. Anyway all these facts are of the relative nature. Because Google gained 10 billions dollars of profit from the sale of applications in 2014.
Also you can’t ignore the existence of such services as Play, Films, Books and Music. The last one, for instance, has a monthly subscription. And of course, it is paid.