Andy Rubin: over 300,000 Android phones are being activated every day

By on Dec 9, 2010 at 7:35 AM
mobile December 9, 2010

Google’s VP of Engineering, Andy Rubin, utilized the social-network Twitter to drop some knowledge on the world. Mr. Rubin notes that his company’s mobile operating system is now being activated on over 300,000 phones each and every day. That’s over 2.1 million phones every week and over 9 million phones every month. Back in August of this year, Google CEO Eric Schmidt announced that Android activations had just passed the 200,000 per day mark — and subsequently set off a little activation brouhaha with rival Apple. For the sake of comparison: the latest numbers from iOS maker Apple (released in September 2010) revealed that there were over 230,000 new iOS activations happening every day.

The verbiage used in both of the companies statements is interesting. Rubin notes 300,000 phones activated each day (indicating the number does not include tablets or other devices running Android, but could include users upgrading), while back in September, Jobs noted there were 230,000 new iOS activations each day (indicating that Apple’s numbers include other iOS devices like iPads and iPod touchs, but not users upgrading).

Either way, Google is now on pace to activate over 10 million Android phones per month. That is an impressive figure any way you slice it.

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  • http://www.flickr.com/photos/PACMan3000/ Paul A. Chapel

    Yeah, but most of those phones are being given away in buy-one-get-one-free deals and a lot of Android phones are from companies that don’t pay anything to Google for using Android (i.e. they don’t access the market place).

    Apple still makes something like 32 percent of the smartphone profit and they do it with only 2 models of phones. I think I would rather be Apple in this scenario.

    • Anonymous

      LOL… Here come the defensive responses…LOL

      Yes Apple makes a killing… They make a killing with iMacs too… Yet have only 10 percent of the market…
      There are 2 sides to every story…
      And this story is not about profits… Its about Android world domination…

      When there is an article about profits, then we can talk about how much money Apple makes….

      • http://www.flickr.com/photos/PACMan3000/ Paul A. Chapel

        So I want to compete with Coke-a-Cola and start giving away soda for free. I beat Coke-a-Cola in market share because I’m giving my soda away for free. Coke-a-Cola is still making all the profits. Would you rather be Coke-a-Cola in this scenario or have my company?

        And I was wrong with my numbers above. According to Fortune, Apple actually makes 50 percent of the smartphone profits. Android isn’t even on the radar.

      • http://www.facebook.com/jonmorales Jon Morales

        Your only referring to hardware. Google is not a hardware company. They are an advertising company.

        The irony is that Google makes money on every smartphone sold, including the iPhone as Google is the default search engine for iPhone.

        Google’s master plan is to get as many smart phones out there that are using Google products. Apple may make a crap load of money on hardware, but that revenue is not repeated year over year in advertising revenues.

      • Michael Scrip

        @Jon Morales – “Apple may make a crap load of money on hardware, but that revenue is not repeated year over year in advertising revenues.”

        That’s true…. but selling one phone to someone every 2 years probably makes more money than tiny classified ads.

        Apple just had $8.8 billion in revenue last quarter from the iPhone alone… because they sell the hardware as well as software.

        Google only had $7.3 billion from their entire operation… and Google is huge, right?

        Even if half the phones in the world were Android phones….. those fractions of pennies Google gets from ads can’t touch hardware revenue.

        But you’re right…. Google is an advertising company and Apple is a hardware maker… so it doesn’t really matter.

        Oh… and how pissed is Google that most Android phones on Verizon have Bing pre-installed?

      • Anonymous

        Yes there are two sides, so let us make sure we understand them.

        10% market share, correct.

        In the last 10 years Apple has increased their market share by 400%. All the while Apple earns 81% of the available profits for computers that cost over $1,000.

        3% market share in mobile

        Apple has just 3% (maybe 4%) of the mobile space yet they suck up 50% of all profits in the mobile space. Clearly Google will be just fine no matter Android’s growth. Their manufacturers on the other hand have a problem, they have to make money. This is why Acer, HTC and soon Motorola are all going to their own online market places and services. They are losing buckets of money to Apple and they need to profit from a business standpoint. You can’t stay in business for ever if you are not making money.

        Your idea of Android world domination is seriously flawed but that isn’t your fault, your inability to understand business shows your comment for it’s ignorance.

        PS Not to worry, the persons liking your comment show their stupidity in acknowledging your ignorance as a positive thing.

    • Steve Jobs

      bc Apple isn’t activating free phones either right?

      • Anonymous

        Apple doesn’t have to offer free phones, there is no one else building iOS devices. Apple’s only competition is Apple.

      • http://www.facebook.com/jonmorales Jon Morales

        I know way too many people that have switched from iPhones to Android phones for this to be true. Apple sure acts as if they don’t have any competition in the marketplace. The reality is quite different.

    • http://www.facebook.com/jonmorales Jon Morales

      The $720 data plan over two years doesn’t come free with the buy one get one deal. It’s not like their giving away balloons here. Anyone who gets a buy one get one deal is signing on to an expensive data plan for two years.

      Your point is moot.

  • Wqr

    w3tw4tw4t

  • Anonymous

    Facts are this:

    August Google was activating 200k a day
    On Monday December 6th 2010 Google’s press release reads that they are activating 1.5 million a week (214,258 a day if you are scoring at home) Then 2 1/2 days later it is 300k a day (2.1 million a week). Google doesn’t have to put these numbers on their 10k so they can choose any number they want. The OHA members never report Android handsets sold on their 10k’s they just put total smart phones sold.

    Verizon is selling into a down quarter currently because people are waiting to upgrade to the iPhone (should it actually arrive in Q1 2011). Motorola is expecting a tough Q1 2011 because of a certain device being brought to Verizon.

    It is what it is. Apple is dominating on all levels and that isn’t going to slow. Android has peak folks. Is that a bad thing? Absolutely not. I wish I have a product that people were picking up to the tune of 214,258 a day. Apple has this going for it:

    1. They have 10% market in PC’s
    2. They have 3% of the market for total cell phones but they make 50% of the available profits in all of mobile (let that sit in and you can see how everyone is really sccrewed.)
    3. Apple’s growth is spurred by their stores and this is how that works:

    Apple opens new store(s), never own an Apple product customers go into store come out with Apple product(s). With their Apple products they open up an iTunes account. With the iTunes account they purchase digital media. Because they purchased digital media from iTunes they have access acrossed their new Mac, iPod Touch, iPhone or iPad (combined differently for different people). The experience is fluid and seamless so they are part of the 90%+ that are overwhelmingly satisfied with their Apple products (as every survey for customer satisfaction shows). In time when they need a new whatever idevice they by the idevice from Apple.

    But NewReign, ummm, Apple is the only company that makes idevices. Yes they are and that is why I constantly explain to people that Apple has to competition. Apple only competes with Apple and that is why their growth have been so explosive.

    Android can and will continue to grow but the platform will always face the same problem. Manufacturers have to build new hardware on such a regular basis because that is their only source of revenue from the platform. Now Acer seems to be a company that has it figured out. Their Alive service is a sign that they completely understand how and why Apple is so dominate. The only problem Acer has is they need to gain the mind share. We will see what happens.

    As it stands there is a T-Rex in the room, he is chewing up everything around him, even that old 800lb gorilla from days gone by. System 7, I laugh in you smug face.

    • http://www.flickr.com/photos/PACMan3000/ Paul A. Chapel

      Great points. I would also like to add that Motorola has one of the most popular Android phones, but it was revealed in their last quarterly that they only make 1 dollar per phone.

      1 DOLLAR!!

      It seems that most of their money goes to manufacturing costs or to the carriers. This model of business is not sustainable for the companies supporting Android. They don’t have the profit margin that Apple apparently gets from the carriers who sell the iPhone.

      • Anonymous

        It all comes down to scale of components. Android should be selling more devices than Apple, whether it is or not it should be. That doesn’t matter though because each manufacturer is only selling a small percentage of phone/media players/tablets compared to Apple. Apple has such scale that their component prices are so much lower than everyone’s. That is what makes them so profitable. Plus, Apple has only one competitor Apple.

        HTC competes with Motorola who competes with Samsung who competes with Samsung who competes with SE who competes with LG who competes with Dell who competes with HTC. They all have to battle each. Carriers don’t have to pay a higher price for Android phones because the carriers have to sell them for what they can get. If you have 100 Android devices to compete against you have to sell your phone to the carrier at a good price to make sure you move product. If you are Apple you get your asking price from the carrier because their is no competition for your platform.

      • http://www.facebook.com/jonmorales Jon Morales

        Do you really think that’s true? That they make only $1 per phone.
        That’s a silly assertion. I’m sure they have deals with each of the carriers that gives them a portion of the revenues from monthly data plans.

    • Shanghai Dan

      But NewReign, ummm, Apple is the only company that makes idevices. Yes they are and that is why I constantly explain to people that Apple has to competition. Apple only competes with Apple and that is why their growth have been so explosive.

      Sorry, what device does Apple make? I know they specify a lot of things, and hire a lot of ODM and contract engineers, and do some industrial design work, and market it, but what do they actually make?

      Turns out, companies like Samsung and HTC and Motorola actually MAKE phones. Apple just buys them from a factory and then sells them to you…

      As it stands there is a T-Rex in the room, he is chewing up everything around him, even that old 800lb gorilla from days gone by. System 7, I laugh in you smug face.

      Yet who makes more profit – hard, real cash – at the end of the day? Microsoft of Apple? Sorry, the fruit gets tossed back out the window…

      • Anonymous

        So who else sells devices running Apple’s OS’s? Exactly, no one.

        Up until last quarter Microsoft also had higher earnings per quarter. Which means this quarter Apple will show Earning between $6-$8 Billion more than Microsoft and also pass them in profits.

        One company in the last nine years has gone for a $25 billion dollar company to an almost $300 billion dollar company. The other company has gone from a roughly $500 billion company to a $232 billion company. One company grew by 1200% and one company shrunk by 55%.

      • http://www.facebook.com/jonmorales Jon Morales

        How is this in any way relevant to Google reaching 300,000 activations per day?

        Why do so many people always feel the need to counter positive stats for Android with unrelated positive stats for Apple / iOS?

      • Shanghai Dan

        So who else sells devices running Apple’s OS’s? Exactly, no one.

        Which is why – once again – Apple will be relegated to the sidelines as a bit player, irrelevant in the big picture. Because it cannot stand the thought of other people selling devices on “their” ideas, and they cannot support a wide range of hardware (look at the problems when they released iOS 4 for their 3G and 3GS phones – and they CONTROL the hardware AND software for those products!).

        Up until last quarter Microsoft also had higher earnings per quarter. Which means this quarter Apple will show Earning between $6-$8 Billion more than Microsoft and also pass them in profits.

        Considering they have about 60% of the profit of Microsoft, it’ll take Apple to get to ~$180 billion in revenue – at current profit margins – to equal Microsoft. It’s not going to happen this quarter, sorry.

        One company in the last nine years has gone for a $25 billion dollar company to an almost $300 billion dollar company. The other company has gone from a roughly $500 billion company to a $232 billion company. One company grew by 1200% and one company shrunk by 55%.

        Yet that second company makes more dollars (absolute and percent margin), and pays a dividend as well. Go figure. Market cap means little outside of bragging rights; cash kept and distributed to shareholders is more valuable.

  • Anonymous

    300k activations/day * 365 days/year = 109.5 million activations/year. That sounds a bit high to me even for a worldwide number.

    • Shanghai Dan

      Not at all.. China’s seriously adopting Android phones and devices. China Mobile has 600+ million customers alone. Get just 16% of China mobile to move to Android and you’re at 100 million from just China.

  • Anonymous

    Ok I am seriously impressed with the commentary here. Finally, some intelligent thoughts about these X activations a day posts. It means jack if Google and especially its partners are making virtually no money from said activations.

    • Anonymous

      You really think that all that matters is how much they make on day 1 of the sale? lol, everyone acting like biz experts with the soda comparisons…

      Let’s use the coke example, lets say you give coke away for free (which they don’t, they don’t charge for the OS but they do for the market and other google certified apps) so that you get people addicted to coke for most likely at least 24 months. Now for the next 24 months you make money every time they take a sip, every time they look at the can of coke, every time they do x, y or z. Who would you rather be?

      Back in the real world… they want you on their platform so they can make 30% on every app purchase, every search query, every ad displayed. Why do you think they want android everywhere? For the sales?!? haha, no, they want you seeing their ads! It all comes back to ad views.

    • Bryan

      Google has stated that their investment in the Android OS has paid for itself many times over. As far as the phone manufacturers, I don’t see that they have any other option really but to use Android. iOS, BlackBerry OS, and WebOS are not being licensed out to be used in competing hardware. Symbian is being discontinued. That leaves WM7 and Android. WM7 is brand new, and has yet to be proven in the market place but it does have potential.

      The only other option is for each manufacturer to create their own OS, and that would be terrible for the end user. Software devs would’t write applications for MotorolaOS, SamsungOS, HTCOS, and LGOS since separate their market share wouldn’t be worth their time coding.

  • DubbDee

    And some of those Android phones are cheap, crappy hardware.

    • Shanghai Dan

      And Google makes money on people who cannot afford to buy a different phone. Isn’t choice grand?

    • http://www.facebook.com/jonmorales Jon Morales

      But the $720 data plan over two year contract and revenues made off of Advertising are not insignificant just because some phones are low end.

      It doesn’t take a high end phone for a carrier or Google to make money. And besides, monthly reports show that about 2/3 of Android phones are running Android 2.1 or 2.2, which is to say they are likely not low end phones. So it’s a bit of a myth that the majority of Android phones are low end and cheap. Buy one get one offers from Verizon have been for their top tier phones for example.

  • http://www.apexcarpentryinc.com/blog/ Craig B

    Competition is a great thing. The consumer is the real winner.

  • Anonymous

    so he twittered, 2 for 1 sales of all android phones…

  • http://twitter.com/kirkewilliams kirkewilliams

    299,999 Android phones are being returned every other day. Users switch to iPhone.

    • Anonymous

      Hmmm, then ios numbers should be near 600,000 per day then, right? You people just can’t admit the obvious truth. People get more features on Android. Can’t deny that. They are switching in droves to Android. Think the iphone on Vzw will chang that? First, Android and iphone are on all carriers worldwide, Android is winning. Att sells Android alongside iphone, and Captivates are selling just fine. Good run Apple fanbois, but time to step aside. We’ll take it from here : )

    • http://www.facebook.com/jonmorales Jon Morales

      If that were so you wouldn’t see a growth curve of 125,000 activations per day to 200,000 and now 300,000.

      Android phones are popular. Get over it. Just because it’s not an iProduct doesn’t mean people are somehow being forced to use a product against their will.

      • Anonymous

        yes n no, people don’t or can’t switch to AT&T….big reason y people go to android, and blackberrys suck..

  • Anonymous

    Umm… you guys do know that Android isn’t about making money in and of itself, right? Google makes their bank on ads.

    And yes, I’ve read through the comments and seen how Apple is making money hand over first. Apple’s got vertical integration. Google does not. Apple wants to make money off of the handsets, the app store, etc. Google wants to make money off of ads.

    So, umm… yeah. In this case, marketshare is more important than raw profits because marketshare makes their ads more valuable. The ads are where they make their money.

    • Anonymous

      Fair enough statement. One problem though, Google says that Android will eventually be a billion dollar a year profit machine. iOS brought Apple roughly $6 billion in profit for the FY2010. If they are continuing to increase their numbers as they have been then sometime in 2011 Google will be at that billion dollar mark and Apple will make $10 billion. Google’s profits might be in the ads but Apple is cashing in.

      • Anonymous

        No doubt that Apple is making money hand over first. I mean, you’d have to be an idiot (or an irritating fanboy) to not acknowledge that Apple is pretty much dictating where the mobile environment is going, marketshare be damned.

        I just don’t think a direct parallel should be drawn between how much Google is making through Android and how much Apple is making through iOS. I would be very interested to find out how much ad revenue Google is making as a direct result of Android. It must be major, for Apple to have come with iAds.

      • Anonymous

        You have to remember, Apple’s approach to Ads was in response to Google getting started in the smart phone market. Apple shopped for and made an offer for AdMob but they choose Google’s offer instead. Apple understood that sure, if the Apps are selling they are making money but if free apps are selling they are not. The idea to implement an Ad revenue generator was reactionary (yet smart).

        Android’s should be selling more than iOS already, by leaps and bounds. The fact that it isn’t shows that the platform has peaked. Google makes a little money on Ads and whatever software they license to OHA members. Manufacturers make money on hardware only, while accepting not so great terms from carriers because they are competing with other Android device manufacturers.

        Commenters are always talking about competition being great, okay but manufacturers are the ones that see the bad side to competition. This is why Apple is so dominate. Consumers want Apple products and only one company makes Apple products. Apple doesn’t have to bend to any bargaining of their devices anywhere. This is why I always say that Apple’s only competition is Apple.

    • Shanghai Dan

      Apple’s got vertical integration.

      But, in fact, they do not. There is no “Apple” factory. There aren’t any “Apple” production lines. There are for Samsung, HTC, Motorola, Nokia, etc. But Apple doesn’t actually BUILD anything. They have no factories.

      • Anonymous

        While Apple might not meet the textbook definition for vertical integration, they control every single aspect — in terms of hardware and software — of every single product that they have. They choose who supplies what. Everything that’s made is made on their terms. If you don’t think that’s a reasonable interpretation of vertical integration, I don’t know what to say.

      • Shanghai Dan

        Then pretty much EVERY company is vertically integrated. For even my small clients who may order a few thousand speakers a year, they spec the entire chain and have full BOM approval, including vendor and component approval.

        So I guess pretty much anyone who buys anything from any factory at a wholesale/OEM/ODM level is vertically integrated…

      • Anonymous

        … hmm. Hadn’t considered that. Good point.

  • Anonymous

    I think its too early for either side to be gloating. The numbers from both are highly suspicious, couched as they are in vague terminology. What is an iOS activation? Does it include 3g iPads? What about all these 2 for 1 Android deals in the states? What about custom Android phones that elimate all signs of Google and replace them with BING or Alibaba or Baidu? What will happen in the US when Verizon gets the iPhone? Will new players show up with something new to disrupt the whole ball game?

    What about revenue? Google claims that Android brought in $1 billion in advertising revenue y/y in the last quarter. Apple’s revenue from iPhones on an annualised basis is around $35 billion.

    What about manufacturers ability to make money off of phones? Will Android continue to be a money spinner for Moto, Samsung, LG etc or will there be a race to the bottom in which cheaper and cheaper phones are offered to lure customers? Will Samsung go with a different UI? Will it be any good? Meebo?

    Has smartphone fanboyism taken the place of sport for the geeky set? Personally, I chose to use an iPhone. And a Dualit toaster. Where are all the Dualit fanboys?

    • http://www.facebook.com/jonmorales Jon Morales

      Can’t we all just take the post for what it is and not have to counter it with all of these other irrelevant questions?

      Wouldn’t that just be easier?

  • Anonymous

    My Evo was not free. You have your facts mixed up. Google gives the OS to OEM’s, but they get paid from advertisers. Then the OEM’s spend time and money customizing it. Then they sell the phones to the carriers. The carrier sells you over-priced services to pay for your subsidized phone, whether you pay $200, or $0 upfront for it. The only free thing about it, is your choice. Not to mention, the phones that cost nothing upfront, require a new contract. It’s not like people just have tons of phones just laying around.

  • Anonymous

    My Evo was not free. You have your facts mixed up. Google gives the OS to OEM’s, but they get paid from advertisers. Then the OEM’s spend time and money customizing it. Then they sell the phones to the carriers. The carrier sells you over-priced services to pay for your subsidized phone, whether you pay $200, or $0 upfront for it. The only free thing about it, is your choice. Not to mention, the phones that cost nothing upfront, require a new contract. It’s not like people just have tons of phones just laying around.

  • Anonymous

    Damn. You mean I can’t play infinity blade on my Evo YET? Well, nevermind my 4.3″ screen, flash, free tethering, google navigation, choice of keyboards, unmatched customization, a phone that works, and everything else I bought this phone for….the damn thing is going back. Oh wait, had it too long to return. Guess I’ll have to settle lol get real people. Oh, and what about all of thoae people buying captivates on att? They had the option to buy the iphone, which is the same price. …..

  • Bringit

    Why does Andy Rubin look so sad?

  • Jayhammy

    Um, the iPHone 3GS is now for FREE at Radio Crack and Best Buy (Dec 10 only).

  • Anonymous

    angry birds on android will net the creators a million dollars a month by year end based on article dated Dec 3 on BGR.

    so if the ad based model’s working for app creators it definitely has to work for Google, don’t you think so????

    no doubt apple’s making money of off ios, but people got to be dumb thinking google’s not making money off of android.

  • QNX Please

    Good, its because Android isn’t a locked down, crippled piece of hipster garbage like Apple’s iOS.

    • Anonymous

      Q1 earnings call in January Apple will report 325k-375k activations a day for Oct. 2010- Dec. 2010.

      Google is second banana, deal with it. Use what you like, you don’t have to like someone else’s choice in product and they don’t have to like yours. It is a zero sum game and one that Apple has been and will continue to lead.

  • http://www.facebook.com/jonmorales Jon Morales

    An activation refers not only to hardware, but to a 2 yr data plan. Those are not free. 300,000 people a day are signing up for $720 plans over the course of two years. That is not free, cheap, or insignificant.

  • Creekside

    Hurts, doesn’t it you apple lovers? Android just keeps getting better and better. I love my EVO!

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