Google Could Earn $7 Billion a Year from Android Apps by 2017
Published on: 20th Nov 2013
Note -- this news article is more than a year old.
The potential scale of Google's apps store, and its growth has been highlighted by a financial analyst report, which predicts that Google could be generating USD1.3 billion for the company this calendar year.
Citigroup's Mark May estimates that this year there will be just over 900 million Android devices, and despite reports that Android consumers spend less on apps than their Apple counterparts, he still expects the average revenue per user to be around US$4.59.
That results in total revenues for Google Play of USD4.2 billion, of which Google takes a 30% share -- or around USD1.3 billion, before its own hosting/management costs.
More significantly, he estimates that over the next four years, Google Play revenues will reach at least USD17 billion, resulting in Google taking a slice of USD5.2 billion from the sale of mobile apps.
Adding in the revenue from mobile advertising, then Google's Android investment will pull in at least USD7 billion a year by 2017.
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