Google Paying Carriers to Go Android, Apple Still Charging for iPhone

CrackBerry Kevin vs. Android Balloon

Well technically Google seems to be sharing revenue generated from services like Search, Gmail, Maps, etc. with their carrier and manufacturing partners to incentivize their "going Android". If rumors of Apple making a cool $100,000,000 a year from Google for iPhone search are any indicator, the money may be nothing to sneeze at either.

Apple by contrast also gets $400 from AT&T per iPhone customer (the part AT&T subsidizes off full list price so those who sign contracts can get the iPhone 3GS for $199 instead of $599). So Apple is making money, Google is paying money (offsetting manufacturer cost), but the revenue -- and the access to Android users' data -- is likely so valuable to Google that they consider it well worth the investment.

Given how many and how fast new uber-Android devices are hitting the market, the carriers likely don't mind one bit. (Android aficionados who just bought the Nexus One and now want the EVO 4G, on the other hand, might prefer a bit of a breather.)

Either way, both companies are so obscenely profitable that their respective business models must be doing something right. Still, it's interesting to see the differences in those business models. RIM tries to sell their small network footprint, Apple their brand cache, Google their free OS with revenue sharing services. Which one will prove most successful? We'll have to wait and see.

[MocoNews via Phone Scoop via Android Central. Photo credit.]

Rene Ritchie

Editor-in-Chief of iMore, co-host of Iterate, Debug, Review, The TV Show, Vector, ZEN & TECH, and MacBreak Weekly podcasts. Cook, grappler, photon wrangler. Follow him on Twitter and Google+.

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There are 17 comments. Add yours.

Rob says:

Apple gets 100,000,000 off 75 million devices, Google has what 6 million over 30 different devices, some that are even replacing google search. No wonder they're bribing carriers !

Dave01568 says:

Google should pull google search and maps from iPhone .then see how many customers they will have

zero credibility says:

@Dave Ferrandino (dave01568)
it would be interesting although apple wrote the googlemaps app for the iphone so i'm not sure how much difference it would make. I agree with you on the google search tho ..

usmc says:

Yeah Dave, if you don't like the iPhone and Apple, politely remove yourself from the iPhone Blog and go chat with the 25 Google friends on their sites.

fastlane says:

@Dave Ferrandino (dave01568):
I guess you haven't seen Yahoo! search. I've never used Google search on my iPhone. :lol:

Ron says:

Purchasing market share does not often pay off in the long run.

Chris says:

Dave. If google does that then bye iPhone??? Apple.

jzajzz says:

People .. Android is a platform .. Iphone is a device.. Carriers would pay HTC or a manufacturer for the phones.. the Business models are completely different. People compare Iphone 's mobile business to Google's way too much. The closest competitor to Google is Microsoft.. . It will be interesting to see how MS does with Windows 7 .. it will be a challenge for Google..

ninjamattic says:

Android is the only thing I'd leave my iPhone for, but AT&T only has one device right now, and it's pretty much a throwback to android 1.5. No thanks. Google has some appeal to me, but they're going to have to prove they're worth ditching my already stable and speedy iPhone first.

aspenboy says:

@Dave
Why would google do that? Google makes much more money on search than it does on Android, at least currently. Search is the only thing that makes Google money.
Plus, as others have said Apple makes the apps that use Google's services (Safari uses google search and Maps uses googles maps API). Do you think Google would prevent Safari or Firefox on Mac or PC from using google search so that it would spur usage of Chrome? Makes no sense. Or preventing Windows netbooks from using google search to help with Chrome OS for netbooks, when that comes out? Seems silly too.

LzarEus says:

I completely agree with Matt. I have an interest but with my phone already steady and fast and complete, to a point, android has to do quite a bit more for me to ever consider leaving my effin awesome iPhone.

Rene Ritchie says:

For the record, I will never get tired of CrackBerry Kevin throwing the knee at that MotoDroidOon. Carry on...

wcihlu says:

Thats Kevin of Crackberry!

Who Dat says:

Iphone 4ever Nugga 

AndroidsAndSheep says:

http://www.androidspin.com/2010/03/29/update-google-denies-app-ad-revenu...
“We share revenue on search, not on mobile applications. The same is true for non-Android devices that use Google as the default search engine.”
Google share search revenue with Firefox and other browsers too. Nothing new here.

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