Google CEO Schmidt Celebrates Both Android, iPhone Growth

Aug 7th, 2010 | By technologynews | Category: Technology

Apple CEO Steve Jobs may not have loved
the recent iSuppli report predicting that shipments
of Android handsets will surpass Apple iOS handsets by 2012.
However, for
Eric Schmidt, CEO of Android-maker Google,
business is booming no matter which operating system leads.

Speaking with a group of journalists Aug. 4, following a tech conference in Lake
Tahoe, Calif., Schmidt shared
the incredible success that Google is enjoying with Android, while emphasizing
the unevenness of comparing the offerings of a hardware maker against those of a
software company.

To begin, Schmidt said 200,000 Android-running smartphones are now being
activated each daya phenomenal figure, considering that at a shareholders meeting May 13, Schmidt
impressed by announcing that the figure had grown to 65,000 Android-running
units per day,
up from 60,000 less than a month earlier.

Partly accounting for the more than threefold growth is Droid X, “which
is the one we announced three weeks ago. It’s so popular now, it’s sold out
Samsung also just announced a phone called the Galaxy, which is now delivering
on all four networks in the U.S. And there are many, many more hardware
partners coming,” Schmidt said, in a video clip of the meeting posted by TechCrunch. “So it looks like Android is
not just phenomenal but incredibly phenomenalGod knows how long that will

Schmidt went on to say Google could not be happier about the success of
Android, as the majority of the money Google makes today is based on advertising.
Each time someone uses Android’s powerful browser to search the Web and clicks
on an ad, Google gets paid. The clincher? The same goes for iPhone searches.

“I should also say, we love the success of the iPhone, because the
iPhone also uses Google Search, and we get a good chunk of that revenue when
people search on the iPhone,” Schmidt said.

So it’s worthwhile to create a cool operating system, just so that people
will eventually perform searches? “Trust me that revenue is large enough
to pay for all of the Android activities and a whole bunch more,” Schmidt
told the group.

Worldwide, Nokia smartphonesand, so, the Symbian OSstill dominate,
followed by BlackBerry handsets from Research In Motion and, in third place,
Apple’s iPhones and iOS. Nonetheless, these three are feeling the pressure of
Android, which is giving a major boost to new and lesser-established players.

According to an
Aug. 5 report from IDC,
four of the top-10-shipping smartphone makers
during the second quarter of 2010, each predominantly selling Android-running
handsets, saw growth rates that exceeded 100 percent.

In the U.S.
smartphone market, too, Android has made its presence felt, and during the
quarter enjoyed
a whopping 886 percent growth.

Schmidt later told the assembled journalistsshying from a direct question
regarding revenues”Let me remind you that Android is free, and free is
always a good starting point.” 

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