Google CEO Eric Schmidt has never been shy when speaking about the future prospects of Google. And in a recent sit-down with the Wall Street Journal, Schmidt shared some rather "optimistic" projections. Namely, Schmidt believes that Android will eventually reach 1 billion users, and could consequently generate $10 billion a year for Google. What? Did he say $10 BILLION? Surely, that seems like an outlandish figure. At the current pace of 160,000 new Android users per day, we would reach that 1 billion figure in 17 years, but if the growth rate were to continue exponentially, this could be theoretically reached in as little as five years. Talk about being optimistic. Here it is in his own words:
The Wall Street Journal then pressed Schmidt on the notion that Google is still a "one-trick pony," in that it relies mainly on online advertising for its revenue. Schmidt didn't disagree, but explained that Google "chose the right trick":“If we have a billion people using Android, you think we can’t make money from that?” Schmidt asked rhetorically. All it would take, he said, is $10 per user per year.
Schmidt explains that Google's future revenue streams will not be limited to advertising, and will eventually expand into selling access to news content:Much of the company’s online ad revenue has come from text ads that appear on search results pages of Google’s search engine and on millions of other sites.
But besides seeking to develop a social-networking service that would rival Facebook, the company is trying to obtain a greater share of the online display-ad market. It’s gotten recent traction thanks to its new auction system that matches buyers with sellers.
Selling digital news content? Hmm, not sure if I follow Eric Schmidt on that one, but I'm surely excited to see what the folks at Google have up their sleeve. So, do you think Android will eventually see 1 billion users? Or is that merely a pipe dream?...Google might earn such sums from selling access to digital content from newspapers.
Source: Wall Street Journal