An analyst with Piper Jaffray has predicted that Google could be earning around $1.3 billion in advertising revenue from Android users in 2012.
In a research note Gene Munster anticipates the average revenue per user (ARPU) rate rising from $5,90 in 2010, to $9.75 in 2012. With the number of Android users anticipated to reach 133 million by then, this would equate to $1.3 billion in advertising revenue.
Munster also used figures released by google itself to arrive at this projection. “As we noted, we believe Google's ARPU on Android was $5.90 in 2010. We believe Google's average revenue per search user was $18.85 in 2010 and average revenue per user for Google's advertising businesses in total was $25.77 in 2010.”
Google has already reported that its Android business unit has officially become profitable from last year. Google CEO Eric Schmidt believes that Android has the potential of turning into a $10 billion a year unit provided it has 1 billion users worldwide. Google activates around 300,000 Android devices every single day.