Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Court filing offers rare peek at finances of Android

Published 01/22/2016, 02:05 PM
© Reuters. Photo illustration of Google apps are shown on an Apple iphone 5 in Encinitas

(Reuters) - Google Inc (O:GOOGL) paid Apple Inc (O:AAPL) $1 billion in 2014 to keep its search bar on the iPhone, Bloomberg reported, citing a transcript of court proceedings related to a copyright lawsuit filed by Oracle Corp (N:ORCL) against the search giant.

Google, a unit of Alphabet Inc (O:GOOGL), gives Apple a percentage of the revenue it generates through the iPhone but details of the arrangement have never been made public.

In a portion of the document reviewed by Reuters, an Oracle attorney also claimed that Android had generated revenue of about $31 billion and profit of $22 billion since its release.

While the transcript did not give a date, the first commercial version of Android was released in September 2008.

"Assuming Android has only generated material revenue since 2010, then these figures would constitute about 10 percent of Google's revenue and 15 percent of its gross profit since that time," Atlantic Equities analyst James Cordwell told Reuters.

"This makes sense given mobile is probably about 40 percent of Google's revenue today, having ramped up from close to zero over the last 5-6 years, with this split between iOS and Android," Cordwell added.

Both revelations offer a rare peek into the financial details of Android, a critical product for Google as users shift their search efforts from desktop PCs to mobile devices.

When Oracle's attorney discussed details about Google's relationship with Apple at the Jan. 14 hearing, Google's attorney objected and argued that information should be sealed. Five days later, U.S. Magistrate Judge Donna Ryu denied Google's request.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Google asked Ryu to reconsider her ruling on Thursday, which has not yet been decided. However, a copy of the transcript became available at the courthouse on Thursday.

The court removed it from public view a few hours after posting it as a Reuters reporter was reviewing it, presumably to allow Google to litigate its request to rehear the secrecy issue.

A court official was not immediately available for comment.

In its story, Bloomberg reported that a Google witness had revealed that the revenue share between Google and Apple was 34 percent at one point.

However, it was not clear whether that percentage represented the amount kept by Google or paid to Apple, the report said. (http://bloom.bg/1nqaj0w)

In its lawsuit, Oracle accused Google of using its Java software without paying for it to develop Android.

Google and Apple did not respond to requests for comment on Friday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.