Apple generated more revenue from iPhone in a single quarter than Google’s Android made in its entire lifetime
The ongoing lawsuit between Oracle and Google over the use of Java in Android is accidentally disclosing some confidential information about both the companies. Oracle is suing Google for using its Java software in the development of Android, which launched in 2008, without paying for it.
It has already been revealed that Google paid a hefty Apple $1 billion in 2014 to retain its position as the default search bar provider on iOS Safari, as well as a revenue-sharing agreement between the two companies in which Apple will get a percentage of the revenue that Google generates through Apple devices.
An Oracle lawyer said in federal court amidst an ongoing suit between the two tech giants that Google has reportedly brought in $31 billion in revenue after it acquired the mobile operating system, Android.
Annette Hurst, an Oracle lawyer on January 14 said that Alphabet, Google’s parent company, has creating $22 billion in profits largely from mobile advertising, according to reports by Bloomberg. It’s unclear what period that profit is through.
“Look at the extraordinary magnitude of commerciality here,” she was quoted as saying, according to Bloomberg.
These figures seem to derive mostly from Oracle’s own maths of Google’s Android business rather than an exact figure from Google itself. Google has not confirmed the accuracy of the figures and was not immediately available for comment.
Android is the world’s most commonly used mobile operating system, but it’s open source and phone makers use it for free. Google makes most of its Android-based revenue from mobile ads, or from a cut of app sales on Google Play. The company does sell branded phones and tablets, but these are developed in cooperation with third-party hardware makers and are often deliberately sold at a lower profit margin as showcase devices. Most Android hardware revenue is generated outside of Google.
The revelation is a rare glimpse into Android’s financials, which Google has long kept secret along with the details of other divisions, such as YouTube.
Considering that the figures are accurate, it would mean Android has generated less revenue over its lifetime than the iPhone did in the quarter ended September 30, the most recently reported quarter. Then, Apple said the iPhone generated $32.2 billion in sales, which is expected as it makes most of the money from the sale of its hardware.
However, the inconsistency does focus on the fundamental differences between Google and Apple’s business models. According to Gartner, Android owned 84.7% of the mobile operating system market share in the third quarter of 2015 as opposed to 13.1% of Apple’s iOS.
Google pleaded the judge to redact and seal part of the case’s public transcript, noting the information was “extremely sensitive” and that “public disclosure could have significant negative effects on Google’s business. Apple too petitioned to have the transcript completely sealed. The court transcripts based on which the figures were revealed is now reportedly no longer available online.