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How Much Money Can I Earn With Google Adsense – Android is a very successful mobile operating system. It competes side by side with iOS and dominates mostly in English and non-English speaking countries. Android is open source, and Google usually doesn’t charge licensing fees. So why is Google spending billions of dollars every year on development? How does Google make money from Android? Is Android good for Google?

As you can see, Google doesn’t make money directly from Android through licensing, but Google (Alphabet) makes a large part of its revenue from Android. In the rest of this article, I’ll break down the different revenue streams for Android and walk you through your business model. Also, the Android used by most users is far from “open source” and will show that Google is manipulating it. ⚙️How do you know Android is not open source?

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You may have heard that Android is open source and can be used by any phone manufacturer for free.

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Well, that’s not quite right, because it depends on the type of Android we’re talking about. The only free and open source Android is the “wild” Android system without the Play Store and other necessary services by Google.

Very few manufacturers use “bare” Android, and there’s a good reason why most manufacturers don’t. Customers don’t like it. Not having access to the Google Play App Store is a deal breaker for most of them.

It is worth mentioning the “wild” Amazon Fire Phone based on Android, one of the reasons for its failure was the lack of access to the Play Marketplace. But Amazon can’t use “bare” Android as is. It had to create its own app store and replace many of its own Google apps. Amazon put in a lot of effort, but it didn’t work, and the fire phone doesn’t exist anymore.

Huawei is the last manufacturer to be forced to use bare bones Android. For them, this is not an option but an unintended consequence of the China-US trade war. Below you will find a great video from MKBHD that explains very well the problems facing Huawei by forcing it to use bare Android.

How Does Google Make Money From Android?

If we pay attention to the “wild” version of Android, we can clearly say that Android is not open source, but Google’s own software. The manufacturer doesn’t have to pay anything to use it, but they have to follow a few Google terms to be able to use the full version of Android with Play and other Google apps.

To get a free license to install Android with Play, phone manufacturers must meet the following conditions:

As of 2019, some positions are no longer relevant to the European Union due to the EU’s antitrust case against Google. Phone manufacturers can release “forked” versions of Android without fear of license updates for devices that use Google’s Google Play store.

They can also use Play Store & Play services without installing Us and Chrome. To do so, they must pay a license fee​​​​to Google, which is advertised between $10 and $40 depending on the screen resolution.** In some countries, a license for a small phone costs as much as as little as $2.50. 🔵 Android How to make money through Google Play

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Revenue from Google Play is the biggest part of Android’s business model in terms of revenue, in my opinion. If there was no Android, there would be no Google app store and the money associated with it. So we can give 100% of Play revenue to Android.

Let’s take a look at the different ways that Google Play makes money for Google (Alphabet) and calculate the related income in more detail. Google Play Store purchases and in-app payments

Google Play is a distribution channel for Android applications supported by Google. It includes most applications from third-party developers. Most of them are free, but some are paid.

Google, being a non-profit business, provides this convenient distribution channel and charges app developers for payment. You charge them 30% of what the user pays in-app or in-app. For membership based recurring payments, you will be paid 30% of the membership fee for the first year and 15% for subsequent years.

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Based on the sensor tower, the total expenditure of the Play App Store is estimated at $29.3 billion in 2019. Income from Google’s distribution of music, videos and books.

In addition to its app store, Google also offers several apps, including Play Movies & TV, Play Music, and Play Books, which allow users to stream or download digital content from other publishers. For example, Google currently has 15 million subscribers to its music streaming service.

These apps are part of the “must have” apps that every Android phone should have if mobile phone manufacturers want to install Google Play. Therefore, this makes these apps more popular than other digital content services that are not installed on Android phones and users need to download them first to use them.

It’s hard to imagine Google offering these kinds of apps if Google didn’t have Android, so I also think all the revenue from these apps wouldn’t come from it without Android. Estimated costs associated with Google Play

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Let’s try to translate the numbers. Unfortunately, we cannot rely on Google’s official financial results to calculate Google Play’s revenue, as Google does not publish its results in such detail.

If you want to see a summary of the financial results of Alphabet Inc., the holding company of Google LLC. In one of my previous posts, I did a step-by-step compilation of Google’s financial statements (in alphabetical order).

If you look at Google’s annual earnings report, you’ll see that Google’s revenue (Alphabet) in 2018 was $137 billion. Most of that comes from advertising, but $19.9 billion is “revenue -other income,” which includes revenue from Google Play, Google Cloud and hardware sales.

Unfortunately, Google didn’t tell us what percentage of that $19.9 billion came from Google Play. If we collect some market data using the complete Google Play application and already mentioned 15-30% of Google’s profit, we can easily calculate it ourselves.

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Although this is not necessary to know about the Google Play access plan, I want to point out one thing about the Android App and the Apple App Store.

Although the estimated number of active Android phones is much higher than the iPhone, Apple’s app store spending is much higher than that of Google Play. As previously mentioned, Google Play app usage in 2019 was valued at $29.3 billion, compared to $54.2 billion spent on Apple’s App Store.

Various factors play a role here. Compared to Android phones, the iPhone doesn’t offer many “budget” options, so the average purchase price is higher. These consumers are likely to spend more on digital content. The second factor is the terrain. Android has the highest market share in regions (Asia, Africa, South America) where the purchasing power of consumers is much lower than in developed countries. 🔴 Android Android How to make money from mobile search

Google earns most of its revenue from advertising, and a significant portion of its revenue comes from mobile advertising. Following this example, you can first see that Google makes the most money from Android through mobile search ads, and if we look at what Google makes from mobile search, we get the – that amount. Android found.

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However, this was the wrong approach, and in this part of the article I will try to convince you that even without Android, Google will still be able to make the most of the future from mobile searches. The effect won money – mobile ad revenue. not a disaster. . Android is important to Google, but advertising revenue is not the main reason.

The main problem with integrating Google’s mobile revenue with Android revenue is that mobile advertising revenue comes not only from Android phones, but also from iPhones. Although we only focused on mobile ad revenue for Android users, we can’t imagine that revenue would disappear without Android.

Right now, Google (Alphabet) is paying Apple billions of dollars every year to keep Google as the default search engine, and it’s reasonable to assume that Google would benefit from that if it didn’t make Android itself. to agree with another person. suppliers, as he was able to do with Apple.

Another reason to expect a big impact on Google’s position in the Google search engine without Android is that Google is a leader in the quality of its search engine results. The quality of the product is so good that consumers will love it anyway. If consumers like it, equipment manufacturers like it, even if they pay the price.

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A good example of how clients work

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