Gene Munster: Android’s annual ARPU could be $10 in 2012

By on Feb 9, 2011 at 8:14 PM
mobile February 9, 2011

Think Android isn’t creating a serious amount of cash for Google? Think again. According to Piper Jaffray analyst Gene Munster, the search giant’s free mobile operating system could generate as much as $1.3 billion in revenue for Google in 2012. With an estimated 133 million users, that’s an annual ARPU (average revenue per user) of roughly $9.85. Translation: every Android handset sold nets Google roughly $10 per year in ad revenues alone. Those are pretty impressive numbers. With over 300,000 new activations each time the calendar turns, Google continues to add nearly $3 million in mobile, ad-driven revenue to its bottom line… daily. If you’re going to give something away for free, that’s how to do it.

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22 Comments

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  • FrankP

    Correction. That’s 300,000 activations per DAY.

    • http://twitter.com/simoncabron Simon Cabron

      Maybe he has one of those day calendars

    • Anonymous

      I believe that’s what he meant, when the calendar flips each day…. like one you’d have on a desk…?

  • Anonymous

    I’m a big fan of Android, but isn’t Munster like a dart-throwing analyst?

    • Lolita

      Interesting!

  • Jonathon_flores

    2nd

  • http://twitter.com/mfg68 MFG

    Lol and they said the little green robot wasn’t profitable.

    • Anonymous

      “Revenue per device” isn’t profit, genius. Apple makes $625 per iPhone in revenue and $600 per iPad. In other words, Google needs 60 “activations” to generate the revenue of a single iPhone.

      Also, at $120 profit per iOS device sold ($4 billion in profit last quarter divided by the 33.5 million iOS devices sold), Apple’s per-device PROFIT (revenue minus expenses) is 12x Google’s revenue per device.

      So to sum up, Android definitely helps Google sell a ton of advertising, but its ad revenues from Android aren’t even close to Apple iOS revenue, despite the added costs of actually building hardware.

      • haha

        it said nothing about per device . it says per device they make on ads not the device.. reread before posting

      • Johnathan

        Well the article does say Google gives Android away for free, which isn’t completely true Most. OEM’s pay to have Google services on Android. All Perspectively is saying is Apple make more of the iPhone and iOS since it’s the only OS on the iPhone than Google makes off Android

      • Anonymous

        You are so very very wrong about this FYI. I would correct you, but it would take too much of my time.

      • Tim242

        Don’t you get that Apple and Google are not in the same role. The money per handsets goes to OEM’s, not Google. So stupid. You need to get things into perspective, pun intended.

      • Yoursluttymom

        Not to mention Google also makes money off any device that connects to the web and uses Google’s search engine.

      • Perspectivelysbutthurt

        Butthurt much?

      • http://twitter.com/ChazClout ChazClout

        How on earth did the original comment equate to anything Apple does?

        Apple wasn’t mentioned in this article or the post that you insisted to rant about. What is your motive, to applaud Apple in every non apple related post?

  • Anonymous

    You have to love the business model… Give away all your products and services for free, and make a killing at it…LOL

  • Anonymous

    All i have to say is: Go to the Android market, search for AdFree, install, enjoy.

    • Klingon

      Why? If you don’t support the developers, you are ensuring Android gets second fiddle apps. Go eat a banana.

      • Tim242

        The developers are making more money than brain surgeons, and 90% of all others. I don’t get this support the devs BS. They’ll develop when and for whom they will. Android is too big to ignore now.

      • Anonymous

        Guess I better uninstall AdBlock from Chrome and Firefox also then. Really dude?! I guess the guys at Rovio must be in the welfare check line because I installed AdFree and play Angry Birds without ads from Jared The Gallery of Jewelry. I would tell you to go eat your own bananas, but i think you got something else stuck in your mouth.

  • http://bit.ly/samirsshah समीर शाह

    Google competes on price, Apple on walled garden convenience. That is the reason Android is next “Windows” and iOS the next “OS X”.

    That is why in countries like India, where consumers are very price sensitive, Apple may have sold only thousands of iOS devices. And that pattern may recur in many other emerging markets. One caveat, Apple showcases China as a successful emerging market they have penetrated but that is the exception that proves the rule.

    Compared to that, Android phone and tablets prices will fall drastically making them affordable by many including those in emerging markets. Even there Google will make money with search and other ads.

  • Cashmoneyhustla

    iphone 4 for Verizon today!!! Yaaaay!!!

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