Contrasting Mobile Revenue Models of Apple And Google
Astute Horace Dediu puts things in perspective:
Apple has an operating margin (“profit”) per iPhone of approx. $320. Google keeps about $5.5 per authorized Android phone over a 2 yr. life.— Horace Dediu (@asymco) May 17, 2012
An Apple product generates about $1/day in revenue to Apple over its life. An Android device generates about 2c/day in revenue to Google.— Horace Dediu (@asymco) May 17, 2012
In order for Google to generate the same revenue as Apple does it needs to have 50x more devices in use.
— Horace Dediu (@asymco) May 17, 2012