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Their top 3 revenue sources are ads, ads, and ads. (Respectively ads on their own properties, "Google Network" ads, and YouTube ads.) That's more than 80% of th

Their top 3 revenue sources are ads, ads, and ads. (Respectively ads on their own properties, "Google Network" ads, and YouTube ads.) That's more than 80% of their revenue. GCP is 7.5% of their total revenue. Details here: https://www.oberlo.com/statistics/how-does-google-make-money https://www.oberlo.com/statistics/how-does-google-make-money One of the interesting questions for me is where the profits come in. Android definitely started as a loss leader so that they didn't get shut out of the mobile advertising market. But I could believe that it's in the black now due to the Apple-like model of charging a slice of everything that goes through the phone. Google Cloud is definitely not profitable yet, but they claim they will get there: https://accelerationeconomy.com/cloud-wars/google-cloud-has-absolute-line-of-sight-to-profitability/ https://accelerationeconomy.com/cloud-wars/google-cloud-has-...

wongarsu 4y ago
Android probably pays for itself right now. But its primary purpose is forcing about 70% of phones sold globally to have Google apps pre-installed. And mobile ads, as you said.
- seanmcdirmid 4y ago
  Is that true though? The Chinese market is huge, and even if most phones are running Android, they aren’t including google apps. But if we exclude Chinese android phones, I would guess that Google doesn’t hit that 70% mark.
  - kranke155 4y ago
    Virtually all markets outside of the top wealthy western countries are Android dominated. I’ve lived in UK where iOS is very common but also in Portugal where the average salary is 800 euros and virtually everyone uses android. Most of the world can’t afford iPhones
    - seanmcdirmid 4y ago
      That’s true, but China is 1.4 billion people with not much iPhone penetration either (relatively speaking). That’s 17.5% of the world, so getting to 80% with that handicap (google being blocked in china) seems like a huge problem.
      - powerapple 4y ago
        It is not such a big problem as you would imagine. The money comes from businesses, not consumers. As far as I know, the US and EU markets have the highest value consumers, so even Google is outside China, it is making a lot money from Chinese advertisers. The biggest problem for Google is competition from other advertising platforms, I don't remember last time I searched for a product on Google to be honest. I believe the core ad platform for Google is going to be YouTube, it is the only one I am not leaving now.
jcampbell1 4y ago
Google pays Apple $10B a quarter as search revenue sharing. Chrome/Android are good deals on an alternative analysis basis.

wongarsu 4y ago

Android probably pays for itself right now. But its primary purpose is forcing about 70% of phones sold globally to have Google apps pre-installed. And mobile ads, as you said.

seanmcdirmid 4y ago
Is that true though? The Chinese market is huge, and even if most phones are running Android, they aren’t including google apps. But if we exclude Chinese android phones, I would guess that Google doesn’t hit that 70% mark.
- kranke155 4y ago
  Virtually all markets outside of the top wealthy western countries are Android dominated. I’ve lived in UK where iOS is very common but also in Portugal where the average salary is 800 euros and virtually everyone uses android. Most of the world can’t afford iPhones
  - seanmcdirmid 4y ago
    That’s true, but China is 1.4 billion people with not much iPhone penetration either (relatively speaking). That’s 17.5% of the world, so getting to 80% with that handicap (google being blocked in china) seems like a huge problem.
    - powerapple 4y ago
      It is not such a big problem as you would imagine. The money comes from businesses, not consumers. As far as I know, the US and EU markets have the highest value consumers, so even Google is outside China, it is making a lot money from Chinese advertisers. The biggest problem for Google is competition from other advertising platforms, I don't remember last time I searched for a product on Google to be honest. I believe the core ad platform for Google is going to be YouTube, it is the only one I am not leaving now.

jcampbell1 4y ago

Google pays Apple $10B a quarter as search revenue sharing. Chrome/Android are good deals on an alternative analysis basis.