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Google’s customers are advertisers, not app developers.

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ryanhuff 8y ago
Google took money from the developer in exchange for the performance of a service. The developer is a customer of Google's.
- ratsmack 8y ago
  I believe the point parent was trying to make is that advertisers are more valuable customers while app developers, as customers, are expendable.
FireBeyond 8y ago
Those app developers who have been dutifully paying fees to Google may be surprised to discover that they are somehow not also paying customers...
- JetSpiegel 8y ago
  Ancillary customers that Google throws some crumbs to, not the raison d'être of the enterprise.
  - benologist 8y ago
    They have collected billions from developers via their 30% commission on sales and IAPs on their app store, plus the massive volume of advertisements shown in their customers apps for which their split is much more than 30%. Many developers are paying thousands or more a month to Google. Google's customers include advertisers, and they include people paying them for hosting, and people paying them to buy apps, and people paying them to publish apps, people paying them for online services, people buying their hardware, etc.
    - JetSpiegel 8y ago
      https://www.sec.gov/Archives/edgar/data/1652044/000165204419000004/goog10-kq42018.htm#s2C90234435305497B8545742542AABBD https://www.sec.gov/Archives/edgar/data/1652044/000165204419... Their revenue last year was 136 billions. Even if we charitable assume app developers spend 10 billions per annum in aggregate, that's only 10%. Ancillary revenue.
      - deleted 8y ago
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      - deleted 8y ago
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      - benologist 8y ago
        Android alone accounted for $31b revenue in 2016, according to Oracle, of which $22b was purportedly profit just for 2016. Excluding Android's contribution to their advertising ecosystem, which is another chunk of that $136 billion you mention. That's far more than 10% of their gross profit, but even if it was less why would that absolve Google of responsibility? The % doesn't create the customer the transactions do. https://www.bloomberg.com/news/articles/2016-01-21/google-s-android-generates-31-billion-revenue-oracle-says-ijor8hvt https://www.bloomberg.com/news/articles/2016-01-21/google-s-...
        HillaryBriss 8y ago
        Wait. I'm reading that differently. I read it as saying $31 billion in revenue since Android was released, not in 2016 alone. That was more than 10 years ago. And of that $31 billion, $22 billion is profit. Finally, a lot of that revenue came from payments made to Google by handset operators, not app developer fees.
        benologist 8y ago
        It's probably wrong, just something internal Oracle leaked on a topic without much transparency. But even if all Google ever made was the $25 one-time fee all Play Store developers have paid they meet the criteria to be customers. It's got to be about 2 decades since only advertisers gave Google money in exchange for goods and services, since then there are dozens of ways to be their customer.

deleted 8y ago

[deleted]

Google took money from the developer in exchange for the performance of a service. The developer is a customer of Google's.

ratsmack 8y ago
I believe the point parent was trying to make is that advertisers are more valuable customers while app developers, as customers, are expendable.

FireBeyond 8y ago

Those app developers who have been dutifully paying fees to Google may be surprised to discover that they are somehow not also paying customers...

JetSpiegel 8y ago
Ancillary customers that Google throws some crumbs to, not the raison d'être of the enterprise.
- benologist 8y ago
  They have collected billions from developers via their 30% commission on sales and IAPs on their app store, plus the massive volume of advertisements shown in their customers apps for which their split is much more than 30%. Many developers are paying thousands or more a month to Google. Google's customers include advertisers, and they include people paying them for hosting, and people paying them to buy apps, and people paying them to publish apps, people paying them for online services, people buying their hardware, etc.
  - JetSpiegel 8y ago
    https://www.sec.gov/Archives/edgar/data/1652044/000165204419000004/goog10-kq42018.htm#s2C90234435305497B8545742542AABBD https://www.sec.gov/Archives/edgar/data/1652044/000165204419... Their revenue last year was 136 billions. Even if we charitable assume app developers spend 10 billions per annum in aggregate, that's only 10%. Ancillary revenue.
    - deleted 8y ago
      [deleted]
    - deleted 8y ago
      [deleted]
    - benologist 8y ago
      Android alone accounted for $31b revenue in 2016, according to Oracle, of which $22b was purportedly profit just for 2016. Excluding Android's contribution to their advertising ecosystem, which is another chunk of that $136 billion you mention. That's far more than 10% of their gross profit, but even if it was less why would that absolve Google of responsibility? The % doesn't create the customer the transactions do. https://www.bloomberg.com/news/articles/2016-01-21/google-s-android-generates-31-billion-revenue-oracle-says-ijor8hvt https://www.bloomberg.com/news/articles/2016-01-21/google-s-...
      - HillaryBriss 8y ago
        Wait. I'm reading that differently. I read it as saying $31 billion in revenue since Android was released, not in 2016 alone. That was more than 10 years ago. And of that $31 billion, $22 billion is profit. Finally, a lot of that revenue came from payments made to Google by handset operators, not app developer fees.
        benologist 8y ago
        It's probably wrong, just something internal Oracle leaked on a topic without much transparency. But even if all Google ever made was the $25 one-time fee all Play Store developers have paid they meet the criteria to be customers. It's got to be about 2 decades since only advertisers gave Google money in exchange for goods and services, since then there are dozens of ways to be their customer.