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Does Google make any money from Android directly?

  • I know that it makes a lot of money from ads, but the question here is not about such money. 1) Does Google make any money directly through licensing the OS (or "royalty fees" etc? 2) As far as I understand from "http://source.android.com/faqs.html#what-kind-of-open-source-project-is-android.", compatibility process is free and a manufacturer does not need to use the core Google apps (and their licensing is different) in order to be able to use "Android" trademark. Is that the case? If that is NOT the case (so they MUST use Google core apps), does Google charge them any money (please give sources)? 3) As far as I see from http://www.asymco.com/%C3%A2%C2%80%C2%A6d-economics-an-introduction/ , "device vendors and carriers get a cut. google’s model has always been one of giving a cut of revenue to their upstream distribution. ıt just might be surprising to hear that device vendors like samsung and carriers get a piece of search **and apps**." excerpt means that Google is actually giving money for apps. Is that the case? In short, does Google make any money from Android except through ads and %30 cut from Play Store?

  • Answer:

    Disclaimer: I do not have sources. This is half-knowledge gained by working at Motorola Mobile Devices Google gets a shit-load of money for each Google device. By that I mean: HTC G1, Motorola DROID, HTC Nexus 1, Samsung Nexus S, Samsung Galaxy Nexus, LG Nexus 4, Samsung Nexus 10, etc. I worked on the Motorola DROID, which is a Google device. It sold like hot-cakes about 3 years ago. Google does everything end to end on the device. As an engineer at Motorola, I have seldom had to fix issues on the DROID myself. You do some testing, come up with an analysis, update JIRA or whichever bug tracking tool and send an email to the Google engineer who is working on it. When I do fix an issue, I have to fight with Google to get it committed ! Ok, long story aside, we just provide the hardware and minimum engineering support and they do the rest. Google got a huge cut from the device : In my knowledge it was somewhere around 50%. This figure might have changed over time, depending on the relationship between the manufacturer and Google. Motorola and LG have benefitted a lot from teaming up with Google, so it is likely that Google would squeeze the life out of them the next time those manufacturers try to cash-in on the brand. On, the other hand, Samsung hasn't done so well with its Google devices, but Samsung's own Android devices have thrashed almost every other manufacturer's phones. It would be in Google's interest to release subsequent versions of android with flagship phones from Samsung by lowering their own cut. Amazon makes Android devices. They, however, aren't part of the Android eco-system. To be compatible or to use the Android label, you need to license Google Play client software : this includes the Play Store, Mail, Talk,  etc. If I'm not mistaken, during my internship at Amazon (with their app-store team) I didn't notice a single Google app in the list of 40k (1 year back) apps they had. So the only way  users can get those apps (officially) is by using play-store. Amazon obviously wants people to purchase apps from there, and so they just freeload Android and don't license the Google apps : NO PLAY STORE. Hence, they don't pay Google any money. All they have to do is come up with good substitutes for GMail, Talk, Google+, Youtube, and all popular Google applications. Bummer right ? Google doesn't charge people for using the Android source code for whatever purpose. The Android eco-system, however, is a broader term. OEMs wouldn't be able to sell half as many phones as they do now without the Google experience. THAT, my friend, is not free. Prior to Android, just like Apple, most manufacturers had their own app-store, developer community, etc. Everyone struggled to get developers to adopt their platform, submit applications, get feedback form users, etc. Google WONT simply GIFT things like that to other businesses, especially when they spend millions of dollars maintaining these cloud-enabled services, and things like GCM (Google Cloud Messaging), and so on. The inner details of business partnerships, how much Google gets etc. are all corporate secrets which aren't published. My answer may not have much credibility in terms of documented sources, but its closer to the truth than not.

Ridhish Guhan at Quora Visit the source

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