Android’s Generated $31 Billion Revenue in its Lifetime – Secret Deal with Apple and More Confidential Data Disclosed
Google's Android operating system has generated a revenue of $31 billion, according to a lawyer representing Oracle Corp. The company paid Apple $1 billion in 2014 to keep it as the default search engine on iOS devices, the same attorney disclosed in the court.
Google paid Apple $1 billion to keep it the default search engine on iOS:
Launched in 2008, Android operating system makes money for Google in advertisements shown on Android devices, and the revenue generated from Google's app store, the Google Play. While Google doesn't like to share financial details of Android, a lawyer for Oracle shared the figures in a court which Google claims were marked for “Attorney’s Eyes Only.”
Oracle's lawyer disclosed these tightly held financial bits on January 14 accusing Google of using Java software in Android operating system without paying for it. Android has generated Google $22 billion in profit and a revenue of $31 billion, said the attorney, Annette Hurst. In a court filing, Google said that the lawyer based her statement on information from the confidential internal financial document.
Google does not publicly allocate revenues or profits to Android separate and apart from Google’s general business. That non-public financial data is highly sensitive, and public disclosure could have significant negative effects on Google’s business.
There is no information if the court ruled on Google's request to seal the data, the transcript has however disappeared from the electronic court records.
The same Google-Oracle case has also revealed that Google paid Apple $1 billion in 2014 as part of an ongoing deal to make Google the primary search provider in iOS devices. Currently, Google is making four times more on iOS devices through its search engine than on its own Android platform, making it an important deal for the company. In 2014, there were rumors claiming that Yahoo was trying to replace Google as the main search engine on iOS devices. That deal, however, never materialized. Bloomberg reports how Apple also benefits from Google's business model, it often criticizes:
The revenue-sharing agreement reveals the lengths Google must go to keep people using its search tool on mobile devices. It also shows how Apple benefits financially from Google’s advertising-based business model that Chief Executive Officer Tim Cook has criticized as an intrusion of privacy.
Google said that the "financial terms of Google’s agreement with Apple are highly sensitive to both Google and Apple. Both Apple and Google have always treated this information as extremely confidential.” As is often witnessed in the tech industry, the worst of the enemies may be publicly bashing each other, there are always some strong deals going on benefitting both the sides.
Oracle, however, seems to the unhappy party for now as it's trying to disclose as much financial data as possible to get more compensation from Google. "Oracle could end up receiving up to $1 billion in damages when new versions of Android are factored," Bloomberg details.
Google is switching to an open version of Java for the upcoming Android N to ensure that Oracle can no longer target the operating system for profit-sharing.