Android Contenues to loose money even with $97.7 MILLION In Q1
Rob Houglum LeadLinkMedia.com Friday, May 04, 2012
Google has long been pretty wary about the financials behind its Android mobile OS and data that has emerged over the past week could give us an intimation why : it has been losing money from Day One.
In the suit between Oracle and Google in which Oracle claims Google, in its Android platform, infringes on copyrights and patents related to Java a judge and jurors are trying to work out what sort of damages might be awarded to Oracle. That case took a turn for the specific yesterday, when Judge William Alsup ( as reported by Reuters ) read out excerpts of Google documents that determined the platform produced a loss for every quarter of 2010 and "a enormous loss for the entire year".
He also noted that Android generated around $97.7 million in cash in quarter 1 of 2010.
The jury commenced their thoughts on Monday, and if they can't come to a unanimous call, then the trial will carry on to its 2nd phase, concerning patents, with the 1st phase on copyright afterwards facing a retrial.
What quantity of money Google has or hasn't made is a very important part of the case as it can be used to decide how much Oracle can potentially receive in damages if it wins the case though Oracle contends that whether or not Android is making a loss, this should not have any bearing on the case.
Ironically, if Google can show it's not making much money out of Android, then that may mean it has less responsibility. On the other hand, that tough performance might also become a lever by which critics might begin to question why Google is chasing a business that is going nowhere financially.
Figures from Google documents from 2010 made public earlier in the trial showed that Google expected a loss of $113 million in 2010 from Android and that it expected to have profits of $64 million in 2011 ; $248 million in 2012 ; and $548 in 2013. The overwhelming majority of that cash will be coming from advertising, with tiny but growing %s also coming from app sales.
Tags: Google SUCKS