Android Contenues to loose money even with $97.7 MILLION In Q1
Rob Houglum LeadLinkMedia.com Friday, May 04, 2012
Google has often been pretty cagey about the financials behind its Android mobile OS and data that has appeared over the last week could give us a hint why : it has been losing money from Day One.
In the legal action between Oracle and Google in which Oracle claims Google, in its Android platform, infringes on copyrights and patents related to Java a judge and jury are endeavoring to work out what kind of damages might be awarded to Oracle. That case took a turn for the specific yesterday, when Judge William Alsup ( as reported by Reuters ) read out excerpts of Google documents that determined the platform produced a net loss for every quarter of 2010 and "a enormous loss for the entire year".
He also noted that Android generated around $97.7 million in revenue in the first quarter of 2010.
The jury began their deliberations on Monday, and if they cannot come to a unanimous decision, then the trial will go on to its 2nd phase, concerning patents, with the 1st phase on copyright afterwards facing a retrial.
What quantity of money Google has or has not made is a very important part of the case because it can often be used to decide how much Oracle can possibly receive in damages if it wins the case although Oracle says that whether or not Android is making a loss, this shouldn't have any bearing on the case.
Ironically, if Google can show it's not making much money out of Android, then that may mean it has less liability. Alternatively, that difficult performance might also become a lever by which critics might begin to ask why Google is pursuing a business that is going nowhere financially.
Figures from Google documents from 2010 made public earlier in the trial showed that Google expected a loss of $113 million in 2010 from Android and that it predicted to have profits of $64 million in 2011 ; $248 million in 2012 ; and $548 in 2013. The overwhelming majority of that revenue will be coming from advertising, with tiny but growing pc.s also coming from app sales.
Tags: Google SUCKS