Google CEO: Android could net us $10 Billion per year

[wuyanks]

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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:

“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.

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":

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.

Schmidt explains that Google's future revenue streams will not be limited to advertising, and will eventually expand into selling access to news content:

...Google might earn such sums from selling access to digital content from newspapers.

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?


via MocoNews
Source: Wall Street Journal

 

[ogbobby4]

android is going to become aware and take over the world dancedroid

 

[Tanknspank]

android is going to become aware and take over the world dancedroid

It already has... :icon_eek:

 

[JoeeDB]

One BILLION users? Good to see they're setting their goals high, but is that even a realistic possibility?

 

[kodiak799]

I think the number is realistic...think in terms of devices, or "subscriptions", rather than users.

It's growing on phones at a rapid pace. It's coming on tablets. Some derivative or combination (they've said ChromeOS and Android will probably merge at some point) will eventually start appearing on PC's.

Then think about DVR's, camcorders, PS3...it's even coming out in GM vehicles with OnStar, correct?

And that's the power of Android. With each new type of device it supports, it creates synergies (and exponential demand) from consumers.

 

[wuyanks]

true... Google TV, Google Me, Google Games, Google Music all coming out soon... yeah that 1 billion could be realistic at some point.

 

[kodiak799]

true... Google TV, Google Me, Google Games, Google Music all coming out soon... yeah that 1 billion could be realistic at some point.

Not to mention google voice can create some real customer loyalty with free texting and VoIP, especially as they improve the transcribed voicemail feature.

And android/Droid is a real assault on RIM. Improve the corporate email, and you can get users to push their IT depts to switch, which creates opportunity to take share from BIS servers.

I think it's a really well executed plan so far. They are coming at this from multiple angles to spur demand. A lot of footholds right now, but I think the real assault is yet to begin.