Even before the release of the first Android tablet and the Honeycomb operating system, Google predicted its partners would sell more than 10 million tablets a year beginning in 2011 and capture up to one-third of the market by 2012, The Verge reported. The information comes from Google’s testimony in an ongoing trial with Oracle. Android Senior Vice President Andy Rubin made the prediction based on tablet market data from Morgan Stanley, which estimated a total of 46 million tablets would be sold by 2012. The Mountain View-based company’s expectations have fallen short, however, and Apple has dominated the tablet market with more than 67 million iPads sold thus far. The Internet giant also expected Android tablets to generate up to $110 million in search revenue in 2011 and $220 million in 2012. More →
Two years before the first commercial release of Android, Google shopped a device to carriers that contained a “basic phone user interface.” The Mountain View-based company approached T-Mobile and called the device a win-win when combined with the carrier’s unlimited data plan. The original designs surfaced during Google’s trial against Oracle over the use of Java in Android, The Verge reported. Additional documents revealed that Google was looking to change T-Mobile’s plan pricing structure, and offer unlimited data for $9.99 a month. To subsidize the reduced cost, the Internet giant would have agreed to not take the commission it might earn from the carrier when it referred Android buyers to its online store. Google’s original plan never became a reality, however, and the first commercial Android phone, the T-Mobile G1, was released with $25 and $35 data plans. A second image outlining additional details follows below. More →
According to Google CEO and co-founder Larry Page, the Android mobile operating system is an important asset for Google, but it is not critical. Page made the claim during courtroom testimony as he took the stand for a second day in the company’s legal dispute with Oracle. The CEO’s testimony is rather puzzling — Page has previously claimed the company’s Android platform was “on fire” and a “tremendous example of the power of partnership” that “gets better with each version.” During an earnings call in October, Page said the company was “seeing a huge positive revenue impact from mobile, which has grown 2.5 times in the last 12 months to a run rate of over $2.5 billion.” Furthermore, Google’s $12.5 billion acquisition of Motorola Mobility was meant to protect Android and further its mobile dominance according to statements the CEO made when the deal was announced. More →
According to legal documents for its upcoming hearing with Oracle, between 2008 and 2011 Android generated less than $550 million in revenue for Google. Apple’s iPhone, iPod touch and iPad, which use Google Maps and search, generated more than four times as much revenue for the Mountain View-based company during the same time frame, The Guardian reported on Thursday. Roughly 100 million Android devices have been activated since the end of 2011, with an average of 850,000 devices activated each day, suggesting that Google pulls in slightly more than $10 per Android handset each year. Google CEO Larry Page said during an earnings call in October that the company was “seeing a huge positive revenue impact from mobile, which has grown 2.5 times in the last 12 months to a run rate of over $2.5 billion.” Page’s comments indicate that a large sum of Google’s mobile revenue comes from services outside of its Android ecosystem. Since the release of the iPhone, Google has had a deal with Apple to offer its Maps and search services on the popular handset, which may contribute largely to the company’s $2.5 billion in mobile revenue. More →
Google on Tuesday offered to pay Oracle a percentage of its Android revenue if Oracle wins a patent infringement suit set to be tried soon. Google offered to pay the company roughly $2.8 million in damages on the two patents remaining in the case, giving Oracle 0.5% of Android revenue on one patent until it expires this December, and 0.015% on a second patent until it expires in April 2018. Reuters reports that Oracle rejected the offer, however, claiming it was too low. Earlier this month, a U.S. judge in San Francisco scheduled the trial between the two companies for April 16th. Oracle sued the the Mountain View-based firm in 2010, alleging that Google’s Android operating system infringes Oracle’s intellectual property covering the Java programming language. In addition, the company is also suing Google for copyright infringement, which could reportedly earn Oracle hundreds of millions of dollars. The company previously claimed that the search giant earns $10 million in annual revenue each day from Android activations. More →
A U.S. judge in San Francisco has scheduled the trial between Oracle and Google for April 16th, Reuters reported on Tuesday. Oracle sued Google in 2010, alleging that the Mountain View-based company’s Android operating system infringes Oracle’s intellectual property covering the Java programming language. In addition, the company is also suing Google for copyright infringement, which could earn Oracle hundreds of millions of dollars. “These patent and copyright claims are without merit, and we look forward to defending against them at trial,” Google spokesman Jim Prosser said. The trial is expected to last eight weeks. More →
Oracle recently asked a court to stay or dismiss a Java-related patent infringement case against Google for up to 9 months. In a letter to the court, however, Oracle also revealed how much it believes Google makes per day from Android activations alone. “Each day’s worth of activations likely generates approximately $10 million in annual mobile advertising revenue for Google,” Oracle said. Patent expert Florian Muller of FOSS Patents explained that while Oracle doesn’t state how it came to the conclusion, the figure is likely derived “on the assumption of annual advertising revenues of $14 per Android user.” Oracle also argued that Android helps Google gain users on its Google+ social network and that Android alone is much more than a source for mobile ad revenue. Oracle hopes the stay or dismissal, if approved by the judge, might lead to a near-term copyright trial, Muller explained.
HP is reportedly holding a meeting Tuesday night during which it may decide the fate of its webOS mobile platform, The Verge reported on Tuesday. The meeting will take place after the market closes and will be led by CEO Meg Whitman at 4:30 p.m. PST. According to Reuters, HP has been toying with the idea of selling the unit and possible suitors include Amazon, Intel, Oracle, Research In Motion and IBM. The potential sale will likely fetch far less than the $1.2 billion that HP paid to acquire Palm in 2010. HP originally said it was killing off webOS hardware in August, and recent reports have suggested HP will soon put the final nail in the webOS coffin and subsequently lay off 500 webOS employees. More →
Operating systems are big business. But just how big you ask? According to research firm Gartner, sales of server and desktop operating systems totalled nearly $30.4 billion in 2010 alone. “As the global economy recovered, worldwide operating system (OS) revenue totaled $30.4 billion in 2010, a 7.8 percent increase from 2009,” explains Gartner. “Among client OSs, Mac OS was the fastest-growing subsegment in 2010 as the unit shipments of Mac desktop/laptop devices saw strong sales, although from a much-smaller basis. Windows client was still the largest client OS segment, with high-single-digit growth, particularly driven by adoption of Windows 7 and the imminent end of life (EOL) of Windows XP.” Oracle saw the largest percentage-growth year-over-year thanks to its acquisition of Sun Microsystems. Analysts are expecting the operating system revenues to continue to rise in 2011. More →
HP on Wednesday filed a lawsuit against Adrian Jones, the company’s former head of enterprise sales for the Asia region, to stop him from sharing hundreds of documents he allegedly stole before leaving the company and joining his current employer, Oracle. HP said it had planned to fire Jones earlier this year after having launched an investigation into his expense reports and his alleged relationship with another HP employee who worked beneath him. Jones left the company, however, and HP alleges that he took hundreds of confidential documents, emails and various customer records with him on a USB drive. In the lawsuit, HP calls for the return of all data and seeks damages resulting from the theft of trade secrets. The allegations of fraudulent expenses and inappropriate behavior with a subordinate are strikingly similar to those made against against former CEO Mark Hurd before he was forced to resign last year. Like Jones, Hurd now holds an executive role at Oracle. More →
Well, we might as well close the loop on this one. Last month, we told you how former HP CEO Mark Hurd was ousted by HP, complimented by Larry Ellison, and then hired by Oracle. We also told you how the Oracle hiring prompted a lawsuit from Mr. Hurd’s former employer. Now, the New York Times is reporting that the two sides have reached an agreement on the embattled executive’s future. In exchange for dropping the lawsuit, Hurd will forfeit nearly half of the $28 million compensation package he was given by HP. The former HP chief, and now Oracle President, will give up 330,177 shares of performance-based restricted stock and 15,853 shares of time-base restricted stock (that’s about $13.34 million using today’s stock price). Oracle and HP, who do quite a bit of business together, did their best to reassure stock holders that the two companies are on the mend. “Oracle and HP will continue to build and expand a partnership that has already lasted for over 25 years,” said Oracle CEO Larry Ellison. “HP and Oracle have been important partners for more than 20 years and are committed to working together to provide exceptional products and service to our customers,” said Cathie Lesjak, the CFO and interim CEO of HP. So ends this chapter of the Mark Hurd Chronicles. More →
HP has filed a civil complaint against embattled CEO Mark Hurd, alleging that the former chief can not fully perform his newly assigned duties with employer Oracle without divulging HP’s trade secrets. Hurd received a severance package from HP which is estimated to be worth roughly $26 million. An excerpt from HP’s civil complaint reads as follows:
Despite being paid millions of dollars in cash, stock and stock options in exchange for Hurd’s agreements to protect HP’s trade secrets and confidential information during his employment and following his departure from his positions at HP as Chairman of the Board, Chief Executive Officer, and President, HP is informed and believes and thereon alleges that Hurd has put HP’s most valuable trade secrets and confidential information in peril. Hurd accepted positions with Oracle Corporation (“Oracle”), a competitor of HP, yesterday as its President and as a member of its Board of Directors. In his new positions, Hurd will be in a situation in which he cannot perform his duties for Oracle without necessarily using and disclosing HP’s trade secrets and confidential information to others.
HP released a statement saying: ““Mark Hurd agreed to and signed agreements designed to protect HP’s trade secrets and confidential information. HP intends to enforce those agreements.” More →
Talk about landing on your feet. HP’s former CEO, Mark Hurd, was forced to resign after allegations of personal misconduct were made public by the company’s board. Hurd was sent packing with a mere $28 million in cash and stock for his efforts; efforts that lasted just over five years at HP. The forced resignation of Hurd was denounced as “cowardly” by Oracle CEO Larry Ellison, and now it looks like Ellison is putting his money where his mouth is. The AP is reporting that Hurd has been named co-president of Mr. Ellison’s company, Oracle. “Mark did a brilliant job at HP and I expect he’ll do even better at Oracle. There is no executive in the IT world with more relevant experience than Mark,” said Ellison. “Oracle’s future is engineering complete and integrated hardware and software systems for the enterprise.” Oracle is the top database reseller in the world and, with Hurd’s expertise, is looking to expand its business into different areas. More →