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Google Actually Makes $1.70 Per Android Device, Says Analyst

The latest detailed report posted by Asymco's well-reputed analyst Horaţiu Dediu reveals that Google makes too little from their Android devices compared to the market potential.

The report is based on Google's official figures revealed in the lawsuit with Oracle. The settlement offer let slip the real figures behind Android's popularity. Between 2008 and 2011, Google earned from its mobile operating system the total of $544 million.

Taking the investigation a step further, Horaţiu Dediu came up with the conclusion that every Android device brings $1.70 to Google's bank vaults.

According to him, this could be only the beginning. "Google had spoken about targeting $10/device/yr. but we have no indication that they are nearly at that level. If they did achieve that level, with an installed base of 300 million, Google could be collecting $3 billion a year in Android income," predicts Dediu.

If this sounds impressive, we should check out the direct competition. Meanwhile, Apple is making at least $576.30 from every iOS device the company sells.

This revenue is calculated for 2011 and includes accessories and the licensing of trademarks but leaves aside the income from the App Store, iTunes music, movies, TV shows, iBooks, greeting cards and textbooks.

Source: Asymco

Radu has been working as a freelance writer for more than five years and has been blogging around since 2004. He is interested in anything Apple as well as gaming and mobile applications.