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 cagey about the financials behind its Android mobile OS and information which has appeared over the past week could give us an indication why : it's been losing cash from Day One.
In the lawsuit between Oracle and Google in which Oracle claims Google, in its Android platform, infringes on copyrights and patents related to Java a judge and jury are attempting to work out what kind of damages might be given to Oracle. That case took a turn for the precise yesterday, when Judge William Alsup ( as reported by Reuters ) read out excerpts of Google documents that determined the platform produced a loss for each quarter of 2010 and "a big loss for the whole year".
He also noted that Android generated around $97.7 million in cash in Q1 of 2010.
The jury started their deliberations on Monday, and if they can not come to a unanimous decision, then the trial will carry on to its 2nd phase, concerning patents, with the first phase on copyright afterwards facing a retrial.
What quantity of money Google has or hasn't made is an important part of the case as it may be used to decide how much Oracle can probably receive in damages if it wins the case although Oracle contends that even though Android is making a loss, this shouldn't 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 liability. Alternatively, that complicated 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 clearly that Google predicted a loss of $113 million in 2010 from Android and that it anticipated to have profits of $64 million in 2011 ; $248 million in 2012 ; and $548 in 2013. The vast majority of that cash will be coming from advertising, with small but growing %s also coming from app sales.
Tags: Google SUCKS