![]() This allows programmers from all over the world to contribute and extend the software that they use every day. Android is a child of this community, and has been open sourced thanks to Google. ![]() The open source community is a gigantic collection of developers and likeminded individuals who believe that sharing information can lead to stronger and better products. Manufacturers can build hardware with confidence that the Android stack will be free, developers can write applications without needing to worry about complex platform costs, and researchers can find flaws and improve the underlying systems without needing to purchase licenses and agreements. This enables massive bonuses for all parties involved. FreeĪndroid has always been, and will always be, free. It is hard to find a single reason, but much easier to point out the areas of success. What is it exactly that makes Android so successful and commercially viable? Some experts claim that it’s the powerful financial companies that sit behind its products others claim that it’s the backing of the open source community and the free sharing mindset and yet others claim it’s the features and the extensive development capabilities. Ads continue to be the bulk of the 8 billion-the vast majority of it.” Why Android Is Successful Page did not further break down what sections this revenue was coming from he only commented on the growth saying, “users paying for content and apps in Google Play.” Google’s SVP and CFO Patrick Pichette commented on the growth saying, “clearly we don’t break down the categories. This has grown by almost three times the amount since last year’s 2.5 billion dollar run rate. Larry Page, Google’s CEO, put Google’s mobile business on an 8 billion dollar run rate. In Q3 of 2012, Google’s total advertising revenue was over 14 billion dollars. The industry leader makes billions of dollars in revenue each year from advertising on Google sites, and on networked “partner” sites through AdSense. Google also takes royalties from applications on Google Play, and charges for adding content to the Google Play store. This advertising avenue may seem small however, this is where the majority of Google’s money is made. To start with, Google collects money from Android through advertising in the browser, and in its Google Play store. Google has various avenues for collecting money from Android and its software stack. ![]() Google’s strategy is in line with their primary company revenue streams, advertisement. But how does Google make money from the Android project? Apple charges not only for their operating system, but also for upgrades and applications. Google is a giant successful company there is no denying it. No one can say for sure, but how does success in market share translate of profits? With Android being a free and open source platform, how is Google making money from it? How Android Makes Money It is hard to say what the future of the smartphone operating system market looks like. The number of Android phones sold in this quarter alone is greater than the total number of smartphones of all kinds sold in the entire year of 2007. Others claim that this is just the start, best stated by John Koetsier:Īndroid is a train that has left the station, and it is stopping for no one. Experts have suggested that with the release of new iPhone models, and new iOS updates, Apple may steal the market share back from Google over the coming years. Some industry experts have made claims that this is the peak of Android’s dominance. The future of Android’s market share is a much more debated topic. This factor and others have led to loss of share for competitors with few exceptions. Many of its competitors, with weaker tie-ins to the mobile OS, do not. Google has a thriving, multifaceted product portfolio. The smartphone operating system isn’t an isolated product, it’s a crucial part of a larger technology ecosystem. The share decline of smartphone operating systems not named iOS since Android’s introduction isn’t a coincidence. IDC’s senior analyst Kevin Restivo had this to say about Android’s success: Much of Android’s growth can be counted from Samsung’s success in the last quarter, with over 39 percent of the smartphone manufacturing market share. Compared to last year’s 136 million units, Android has grown by over 74 percent. These numbers bring Android up to 79 percent market share of smartphone operating systems. The previous record–100 million units sold–was broken by Android in 2012. According to International Data Corporation (IDC), Android’s second quarter 2013 sales have reached 187 million units shipped.
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