Google held a conference call yesterday to brief investors, journalists and analysts on its financials in the last quarter. Focusing on it’s non-core businesses like YouTube, display advertising and mobile, Google pulled in an incredible $7.29bn Q3 revenue, $1.4bn increase from the previous year.
Many wouldn’t expect it, but Google’s Android mobile operating system is helping Google bring in $1 billion revenue a year, helped largely by the fact that the OS will constitute 17.7% of the global mobile device market by the end of 2010 (according to Gartner) coming in second only to Nokia and its Symbian OS but ahead of Apple’s iOS.
Google’s CEO, Eric Schmidt, is almost surprised by Android’s success, noting the following on the conference call:
“Android is much bigger than I could ever have hoped for. Android can become a hugely profitable business for us. Search on mobile will eventually exceed that of PCs … so, eventually, mobile will be a very, very strong revenue stream in comparison to PCs.”
Schmidt has previously said that Android would eventually be a $10 billion business for Google and whilst the company is still a little way off from that projection, the OS is finding its way onto an increasing number smartphone devices and now tablets, even finding its way onto netbooks and laptops.
As mobile use continues to grow and the market booms, Google will undoubtedly have its plans set out to capitalise on the increase take-up of its OS. Not bad for a company that releases a “free” operating system.