Is Google worried about Android profit from smartphone OS biz?

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Do you know the operating profit of Google Android from its smartphone OS business? Is Google really worried about the profit?

According to Strategy Analytics, the operating profit of Google Android from smartphone OS business is $2.4 billion in Q4 2014. Android made operating profit of $4.8 billion in Q4 2014. This indicates Android OS operating profit halved in one year.

Who’s its biggest competitor? It’s obvious. Apple iOS. Apple iOS generated operating profit of $18.8 billion in Q4 2014 against $11.4 billion in Q4 2014.

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A chart displayed by Strategy Analytics shows nil operating profit for BlackBerry, Microsoft and others.

What IDC said about Android and Apple OS share?

IDC earlier said Android and iOS accounted for 96.3 percent of all smartphone shipments in Q4 2014 against 95.6 percent in Q4 2013 and 93.8 percent in 2013.

Android OS share increased to 81.5 percent from 78.7 percent, while Apple iOS share dipped to 14.8 percent from 15.1 percent.

Ramon Llamas, research manager with IDC’s Mobile Phone team, said: “A combination of strong end-user demand, refreshed product portfolios, and the availability of low-cost devices – particularly for Android – drove volumes higher.”

Strategy Analytics the global smartphone operating profit grew 31 percent to $21.2 billion in Q4 2014.

The Android operating system profit share fell to a record-low 11 percent during the quarter from 30 percent. In contrast, Apple iOS profit share rose to a record-high 89 percent from 71 percent.

“Apple’s strategy of premium products and lean logistics is proving hugely profitable. Android’s weak profitability for its hardware partners will worry Google,” said Neil Mawston, executive director at Strategy Analytics.

“If major smartphone manufacturers, like Samsung or Huawei, cannot make decent profits from the Android ecosystem, they may be tempted to look at alternative platforms such as Microsoft, Tizen or Firefox,” Mawston said.

The year 2015 will be crucial for both Apple and Google in the OS space.

Anand B
[email protected]