Who Is Winning (And Who Is Losing) Money With Android?

How much money Google Android?
We do not know for sure, and what we know is not much: Unlike traditional operating systems like Windows, where manufacturers pay a sum of money for each copy installed, Google gives Android free.

The intention is to get that money through advertising, but a report from Goldman Sachs April found 75% of the 11.8 billion won in revenue that Google searches coming from mobile iOS devices. That means that Android was only responsible for 3 billion maximum. That may seem a lot but it’s just small change for Google. By comparison, Facebook bills amounting to 2.5 billion mobile ads per quarter.

How much money does Microsoft with Android?
Surprisingly, Microsoft earns so much money with Android as Google: estimates suggest that manufacturers will pay Microsoft $ 5 to $ 15 for each Android device they do. This translates to two billion dollars a year, and half of that figure comes from Samsung.

The reason? Patents. Microsoft has many patents that Android might infringe, and manufacturers have to pay royalties to Microsoft do not take legal action.

How much money they make Samsung, Sony and LG with Android?
It is hard to believe, but some of the most iconic brands of Android are not making any money with Android. In a frightening analysis by the British technology expert Charles Arthur can be seen that, although Samsung seems to be gaining $ 33.33 each device, HTC is losing $ 36.89. Others like HTC are Sony (losing $ 26.10 per device) and Lenovo / Motorola (losing $ 18.02 per device). Other manufacturers do not report losses but are far from profitable, such as LG who apparently earns $ 0.016 terminal.

By comparison, Apple’s profit margin appears to be $ 184 per smartphone. Still, it could be worse: Microsft loses $ 72 for each phone it sells.


How much money the manufacturers of cases with Android?
It may seem strange but make LG phone cases is probably more profitable than making phone from LG. As this article explains Entrepreneur, profit margins of Android phone cases reach nearly 50% if done for the right phone and have the features that people want. Not that you do not have risks, if you screw the figures and do too, you have to end up paying for inventory that you can never get rid.

How much money the developers Android?
It is well known that Android users have the more closed than those of iOS, partly because Android fist sold to people with all forms of income, not just those of high profits. That and Play Sotre problems related to piracy and impersonation end resulting in a loss of money for developers of Android compared to iOS: while 25% of iOS developers earn more than $ 5,000 per month, only 16% of Android developers manage to earn that money.

In addition, money is more concentrated than in iOS. Android Money is divided between a few big successes, while money in iOS extends. Most of the money is in productivity applications, which is the sector that Apple is trying to win.

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How much money the criminals Android?
We do not know, but the numbers could be quite high. When the malware can infect hundreds of thousands of devices, the damage could be significant. For example, it is estimated that an application in Android malware utilizing cost premium messages could have done to win between 6 and 24 million dollars to their creators. And large botnets can generate millions of dollars. This type of malware is particularly prevalent in Asia, especially in China.

There are also other legitimate organizations that are making money: intermediaries such as eBay or PayPal, subscriptions as companies like Netflix and Amazon. But clearly for manufacturers and application developers, Android is not exactly a license to print money.

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