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Give Google a little more credit. They have 7 separate products with over 1 billion users each [0]. Search, Gmail, Android, Chrome, Maps, Youtube and the Goo

by golfer 8y ago

Give Google a little more credit. They have 7 separate products with over 1 billion users each [0]. Search, Gmail, Android, Chrome, Maps, Youtube and the Google Play Store. [0]: https://www.popsci.com/google-has-7-products-with-1-billion-users https://www.popsci.com/google-has-7-products-with-1-billion-...

youdontknowtho 8y ago
Agreed, but they still make like 90% of their money from ads.
- golfer 8y ago
  You're close. The number is currently 86% and has been falling over time. https://abc.xyz/investor/pdf/2018Q1_alphabet_earnings_release.pdf https://abc.xyz/investor/pdf/2018Q1_alphabet_earnings_releas...
  - youdontknowtho 8y ago
    Oh. I stand corrected. Thank god all those PHD's are working on showing me ads. We're saved.
TAForObvReasons 8y ago
Those have strong user counts because they are free or significantly less expensive than alternatives. Search is free -- if they decided to charge anything for search, people would switch to yahoo or bing in a heartbeat. If they charged for chrome, that would be a red letter day for Firefox. Android would see a hard fork.
- fauigerzigerk 8y ago
  But among all the free search engines people choose Google. That has to mean something. It's true after all that competitors are only a click away. And I'm saying this in spite of being less and less happy with Google's search results lately. It has become very difficult to prevent Google from generalising queries beyond all recognition.
outside1234 8y ago
The stock market doesn't care about users, it cares about profits. Android and Chrome and Google Play are unprofitable.
- deleted 8y ago
  [deleted]
- mxschumacher 8y ago
  the data they collect on those platforms feeds back into improving their ad business. It does not make sense to look into "Chrome" as a business in itself.
- tlarkworthy 8y ago
  > Google Play are unprofitable. ??? https://techcrunch.com/2018/01/05/app-revenue-climbed-35-percent-to-60-billion-in-2017/ https://techcrunch.com/2018/01/05/app-revenue-climbed-35-per... $20B in revenue.
  - eddieplan9 8y ago
    sales != revenue. with the 30% commission, it would be at most $6B. From http://money.cnn.com/2018/02/01/technology/google-earnings/index.html http://money.cnn.com/2018/02/01/technology/google-earnings/i...: > Alphabet posted nearly $15 billion in sales for the year from Google's "other revenues," which include cloud services and hardware products, like the Pixel phones and Google Home smart speakers.
    - stvswn 8y ago
      Sales is, by definition, revenue. In this context, sales=revenue (although there is non-sales revenue, which is why the two words mean two different things). I think you're getting at what is sometimes called "cost of revenue" and "net revenue" for businesses where it's important to report on sales channel costs. Google doesn't break down the Play Store revenues this way, but for advertising there's a similar dynamic at play where it's "revenue" and "traffic acquisition costs"

by golfer 8y ago

youdontknowtho 8y ago

Agreed, but they still make like 90% of their money from ads.

golfer 8y ago
You're close. The number is currently 86% and has been falling over time. https://abc.xyz/investor/pdf/2018Q1_alphabet_earnings_release.pdf https://abc.xyz/investor/pdf/2018Q1_alphabet_earnings_releas...
- youdontknowtho 8y ago
  Oh. I stand corrected. Thank god all those PHD's are working on showing me ads. We're saved.

TAForObvReasons 8y ago

Those have strong user counts because they are free or significantly less expensive than alternatives. Search is free -- if they decided to charge anything for search, people would switch to yahoo or bing in a heartbeat. If they charged for chrome, that would be a red letter day for Firefox. Android would see a hard fork.

fauigerzigerk 8y ago
But among all the free search engines people choose Google. That has to mean something. It's true after all that competitors are only a click away. And I'm saying this in spite of being less and less happy with Google's search results lately. It has become very difficult to prevent Google from generalising queries beyond all recognition.

outside1234 8y ago

The stock market doesn't care about users, it cares about profits. Android and Chrome and Google Play are unprofitable.

deleted 8y ago
[deleted]
mxschumacher 8y ago
the data they collect on those platforms feeds back into improving their ad business. It does not make sense to look into "Chrome" as a business in itself.
tlarkworthy 8y ago
> Google Play are unprofitable. ??? https://techcrunch.com/2018/01/05/app-revenue-climbed-35-percent-to-60-billion-in-2017/ https://techcrunch.com/2018/01/05/app-revenue-climbed-35-per... $20B in revenue.
- eddieplan9 8y ago
  sales != revenue. with the 30% commission, it would be at most $6B. From http://money.cnn.com/2018/02/01/technology/google-earnings/index.html http://money.cnn.com/2018/02/01/technology/google-earnings/i...: > Alphabet posted nearly $15 billion in sales for the year from Google's "other revenues," which include cloud services and hardware products, like the Pixel phones and Google Home smart speakers.
  - stvswn 8y ago
    Sales is, by definition, revenue. In this context, sales=revenue (although there is non-sales revenue, which is why the two words mean two different things). I think you're getting at what is sometimes called "cost of revenue" and "net revenue" for businesses where it's important to report on sales channel costs. Google doesn't break down the Play Store revenues this way, but for advertising there's a similar dynamic at play where it's "revenue" and "traffic acquisition costs"