Oracle puts $31B tag on Google’s Android business - Mobile World Live

Oracle puts $31B tag on Google’s Android business

22 JAN 2016

Documents released as part of Oracle and Google’s long-running legal spat suggested the search giant is making bumper profits from Android.

According to Bloomberg, Oracle asserted that Google has made $31 billion in cumulative revenue from Android, with profit pegged at $22 billion.

Of course, there are reasons why Oracle would want to produce a number that is as big as possible, in order to show the scale of its losses as a result of Google not entering into a deal with it over the use of Java in the device platform.

Reuters said that the court documents show that Google did not discuss the figure, but that it might be willing to disclose more as part of the proceedings.

While Android has undoubtedly become big business for Google, the company has never consistently broken-out details of its mobile activities in its quarterly results.

Bloomberg said that Oracle calculated the figure using a method the vendor did not outline, with Google citing the use of confidential internal information.

$1B iPhone search deal
The documents also put a figure on the amount paid by Google to be the default search for Apple’s iPhone – $1 billion.

This comes in the form of a revenue-share deal which, although widely discussed, has not been quantified. Oracle said the revenue share was 34 per cent/66 per cent, although it was noted that Google called for the number to be struck from the record, describing it as “a hypothetical”.

Both Bloomberg and Reuters noted that the court documents were removed from the electronic court records, with Google having said the disclosures should not have been made public.

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Steve Costello

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