Android Contenues to loose money even with $97.7 MILLION In Q1 Rob Houglum LeadLinkMedia.com Friday, May 04, 2012
Google has always been pretty wary about the financials behind its Android mobile OS and information that has appeared during 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 jurors are attempting to work out what type 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 that 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 commenced their thoughts on Monday, and if they can not come to a unanimous call, then the trial will go on to its 2nd phase, concerning patents, with the first phase on copyright subsequently facing a retrial.
How much money Google has or hasn't made is a very important part of the case because it can be used to decide how much Oracle can potentially receive in damages if it wins the case though Oracle contends that even if Android is making a loss, this should not have any bearing on the case.
Ironically, if Google can show it is not making much money out of Android, then that will mean it has less liability. Alternatively, that tough performance might also become a lever by which critics might begin to question why Google is chasing a business that is going nowhere financially.
Figures from Google documents from 2010 revealed earlier in the trial showed clearly that Google anticipated a loss of $113 million in 2010 from Android and that it expected to have profits of $64 million in 2011 ; $248 million in 2012 ; and $548 in 2013. The vast majority of that revenue will be coming from advertising, with tiny but growing pc.s also coming from app sales. Tags: Google SUCKS
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