Google's Android Is Making Boatloads Of Money, Says Schmidt--Way More Than It Costs To Make

Eric Schmidt 1

Google’s Android bet is paying off spectacularly–not just in terms of smartphone market-share but financially, according to Eric Schmidt at the Techonomy conference (relayed by TechCrunch’s MG Siegler).

In addition to being the software platform on an astounding 200,000 Android-based phones that are activated every day, Android is helping Google drive more than enough incremental search revenue to pay for its development–and then some.

Here’s the money quote:

“Trust me that revenue is large enough to pay for all of the Android activities and a whole bunch more.”

And what is that revenue, given that Google gives Android away for free?

It’s just search revenue–so don’t get excited about some massive new revenue stream. And given that people don’t buy a ton more stuff just because they can now search on their mobile phones, a lot of the revenue is presumably cannibalised from computer-based searches.  But it’s revenue that Google might have lost if it hadn’t developed Android.

The whole impetus behind Android, after all, was to control the search experience on mobile devices, which Google rightly recognised would one day dwarf the number of desktop and laptop computers.  And with Android activations now at a run-rate of 73 million a year (200k/day X 365), Google is well on its way to achieving that goal.

Here’s the video of Eric’s chat with reporters:

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