Wednesday, February 23, 2011

Android: Google's Secret Weapon

David Urban submits:

Google (GOOG) recently released fourth quarter results with revenues rising by 26% year-over-year and 16% quarter-over-quarter to $8.44 billion dollars (see conference call transcript here). The global split was consistent with the last 3 years as 48% of all revenues came from the US and 52% of revenues came internationally. Expenses held steady as a percentage of revenues with total costs and expenses being 65% of revenues.

However, while Google?s search and advertising revenues continue to grow at solid rates, the real driver is not advertising per se, but Google?s smartphone operating system Android.

Android was the talk of the Mobile World Congress in Barcelona. Its explosive growth has helped push the smartphone OS into top status among new smartphone purchases, with over 300,000 Android devices being activated a day. Google and its Android operating system have dominated space and attention. In just one year, Android's share of the smartphone


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