Feel-goodroid: Nexus One is in the black, 60K Android devices activated per day
By Chris Ziegler 
posted April 15th 2010 6:01PM
posted April 15th 2010 6:01PM
We'd heard a couple times that the Nexus One was selling at a mere trickle, but what we haven't heard is whether the phones that have sold are enough to generate a profit for Google -- and on its earnings call today, the company claimed for the first time that its superphone is indeed in the black. Speaking both of the Nexus One specifically and of the platform as a whole, the company said that "it is a profitable business for us... we are driving the business to be a profitable business," some of the strongest language we've heard that Google intends to fully convert Android from a hobby into an integral part of its financials going forward. On a related note, the company also boasted on the call that it's "seeing more than 60 thousand devices sold and activations daily," which -- by our rough math, anyhow -- would work out to close to 22 million Android activations annually, and they're now up to some 38,000 apps in the Market. Certainly seem like these guys have cemented their position as a mobile powerhouse, doesn't it?
Good news, lets get that CDMA version out now... Ok?
@iHakr
I like Android.
@iHakr What's the point, Verizon has the Droid Incredible and Sprint has the EVO 4G both coming out in the next 2-3 months. Nexus one will be old new by then.
@Fadakar
Because the nexus will be the first to get updated.
@iHakr
And a keyboard slider for GSM... PLEASE....
FYI:
"by our rough math, anyhow -- would work out to close to 22 million Android"
Now that's "Apple Math" put to good use!
@iHakr
This is good news. I don't own any android products but think they are pretty innovative. I did review today's report. It seems 96% of the quarter's income seems to come from either Google-owned sites or partner-owned sites. The other 3% is not reported in the summary. $6.75 eps beating out est of $6.60. Earning of $5.09 billion vs $4.95. Unfortunately, total costs and expenses came in at $4.3 billion verse $3.6 billion during the same period last year. It seems Google hired about 800 more people during the quarter. It's easy to get excited about Android as a gadget platform, but unfortunately, Google declined to specify how many Nexus Ones have been shipped so far, but said about 60,000 devices using its Android operating system are sold daily. Thus far, advertising appears to account for the much of revenue. Even though the number of ad-clicks increased over last quarter, the prices for ads fell as well. Unfortunately, cost issues and good but not great earnings is making investors nervous. The stock is down 4.6% in the extended market. bummer.
... hey, on the bright side, if you believe that this is a discounted opportunity, you can initiate a call-spread on Google tomorrow. Heck, i'll seriously think that Google may actually be more fairly valued than last quarter. Still long on the big G. (and Apple too!).
@recharged95 but see its not apple math cuz its the truth they said cose to that annually and it works out to 21900000 so i dont quite get how its apple math
@recharged95
If you don't mind not having the snapdragon, the Motorola Milestone is a good Android phone with a QWERTY slider. Granted the keyboard can't compare to an HTC keyboard, but it is still a good all-around device.
@androidboi I wouldn't know. I have been going thru a boatload of gay trying to get a N1. I ordered on Monday. Google's been saying for DAYS that FedEx has it, FedEx says no, now Google says the warehouse may have it, the warehouse says the order fulfillment people have it. The long and short of it is that I know my $530 has the one day shipping charges included in there, yet I won't get my phone till next Monday. They claim they cannot sidestep the usual process, just send me out another one and then figure it out amongst themselves on the backend.
Shit happens, I know, but to charge so much money, fuck up the order fulfillment and then just say "we can't make this go any faster" is fucking unacceptable.
@Fadakar I have four reasons for the N1 over the EVO 4g (I'm on Sprint) 1. I have a hero on contract, that means to buy a new phone, I will have to pay off contract, most likely the N1 will be cheaper. 2. The N1 will get updates first, since its designed by Google. 3. I don't like sence on my Hero, it is too sluggish, no matter what I do. 4. The N1 has already been rooted.
@recharged95 22 million is conservative, very conservative math. First, Evo and Galaxy S are still yet to hit. Second, the (android) marketplace is still growing, so this OS will become more attractive over time. Third, the pace of smartphone adoption continues to grow. Fourth, iPhone contracts (hehe, jk guys, though it's possible).
What does this all mean? The same thing we've seen in the past...exponential growth. 30+ million.
@iHakr and the tablet and the wifi only version
@iHakr WTF.. GOOG is taking crazy hit... down 4% after earnings call... they must be all Oracles up there on wall street.
@iHakr cdma sucks gsm
@rdrunner
What difference does it make how many Android phones are activated per day. Google doesn't make a single penny from Android phones except the Nexus One and that amount isn't enough to pay for Sergey Brin's daily caviar supply.
Google is going to have to get AdMob approved so it can load every Android smartphone with dozens of annoying pop-up ads per hour. Then Google will start making some extra money and lots of Android user enemies.
@MosesusedaniPad On every other phone, yes, the OS is given away free and they don't make money on the activation, but it does open up a revenue stream for them and give them control over a lot of the mobile search market (with the exception of the Backflip and any similarities or any users who change their search method.)
The search market has become much more profitable for Google over time and mobile search is sure to do the same, this isn't about today, it's about the future.
Your speculation on the pop ups might turn out to be right, but it seems that this might be a trend and Google has some of the less disruptive ads online, so don't presume the worst yet. I do think if WP7S becomes the only licensed OS in 3-5 years time I would seriously consider switching to them even if they don't have all the freedom and function of an android, Google will prepare for such backlash or feel it where it hurts.
@androidboi "Because the nexus will be the first to get updated."
I hope so because I'm thinking of selling the N1 for Evo. Man, my T-Mobile 3g is way slower than my previous ATT 3g. Wonder if Sprint will be better :)
@Fadakar And that's why we'll have a 2nd model for the N1, right? View. http://bit.ly/froyo-nexus-two-rumors
@MosesusedaniPad
Too bad for Google that most of the "apps" on the market aren't even apps at all, so they would make nothing from mobile advertising.
I've seen enough theme "apps" and other multimedia encapsulation "apps" now that I'm convinced that more than half the market is full of fluff that does nothing functional.
All these fluff "apps" should be put in another category other than Apps or Games, because they are neither and they are very likely the majority of the app count, which makes PR statements like "over 38,000 apps" disingenuous at best.
KEEP THE BAD ASS PHONES COMING!!!
@FunkieChunkieMunkie These things are storming the smartphone scene faster than a Zergling Rush!
@N900
LeEEEROOOYYYYYYY, JENNNKINNNSSSS!
@N900
+1 for Starcraft reference
@N900
I so want to play Brood War now!
@n8equalsd
Screw Brood War. SC II beta ftw!
@N900
I love Android....I love StarCraft.
@TwiggenBerries
+1 for WoW refrence
@dnkoutso
and you can play Starcraft on an N900 and possibly Android(?)
http://dailymobile.se/2010/01/11/starcraft-running-on-the-nokia-n900-gameplay/
http://handheld.softpedia.com/get/Games/Strategy/Android-Starcraft-83287.shtml
now just put the nexus one on verizon and they will get even more money. like from me. still waiting on that spring date, better not become summer.
@facedown41
I hear you. As I am on Sprint I would like some better options as well.
@thedankone Sprint is getting the HTC evo... that's the Android superphone.
@facedown41
Soon you can get the HTC Incredible on Verizon and The Moto Shadow and Droid 2 will make an appearance in the not to distant future
so will this mean T-Mobile can has uncompromising Snapdragon Droid? ^_^
@LiveFromThe215
Well, my T-Mobile Desire is doing just fine... UK mind but still!
@slimjim316
Words cannot express how my great joy was over T-Mo getting the Desire ...and how it turned into torment, disappointment, pain, anger, depression, and hateful envy when I read that you UK mofos was the ones getting it while we was getting... the friggin HD2 and a keyboardless Cliq. Crap-on-a-stick, gotta take the medication for the aforementioned depression now - thanks alot... -_-)p
@slimjim316 No jokes, i live in the UK and swaer I have only ever sighted around 10 android phones. These things must be pretty big in the US, just shows you how well it pays off to let all carriers have your phone. Take note Apple, just look how well your phone is doing in the UK
@harry20larry
I'm in the UK as well and have seen a few out and about. I work for an IT company though and we've got quite a few in the office.
I only got my N1 after having a play with a hero and a tattoo. Maybe it's because it's an IT office, but I suspect it's because it takes a little while for them to be enough out there for people to get exposure to them and have a play and decide they like them.
e.g. After a few months of my phone lying around the house, my gf asked out of the blue whether she should get the Legend, Desire or N1.
Also got to take into account the contracts people are on. With 18/24 month contracts becoming the norm and most people using a subsidized handset, there's normally a gap once people have decided they want a particular phone until they actually get one.
Nah, thank goodness the Incredible is coming!!
Android FTW!
With all the excitement over the Incredible, and previously the Nexus One and Droid, I'm not surprised. I mean I'm getting an Incredible on day one.
Android has truly arrived, no wonder Apple is shaking in its boots and trying to sue HTC.
Android hit the scene and takes the world by storm like a blitzkrieg!
@ramifications As well as Android is doing and as nice as it is, I still very highly doubt that Apple is "shaking in its boots." And if you really believe that, you may be drinking more koolaid than the Apple fanboys.
@ack154 Yeah, they may not be shaking, but their definetly waking up and seeing Android as the major threat it is.
"Google wants to kill the iPhone but we won't let'em!"
- Steve Jobs
@Pure Calculus If you want to kill anything with Android, better make sure you get TasKiller. LOL. Steve also said this:
"It's like we said on the iPad, if you see a stylus, they blew it. In multitasking, if you see a task manager... they blew it. Users shouldn't ever have to think about it."
TasKiller is the #1 app on Android. They blew it.
@RabidAppleFanboi
apple put a task manager in iphone OS4.0..
o.o
@ramifications: I think if anyone is shaking in their boots, its Microsoft. They have yet to release their new OS, which is giving Android one hell of an amount of time to ramp up market share. And with the numbers Apple and Google will have in terms of handsets and applications by then, I honestly don't see how they will be successful.
It almost seems like it will have the same fate as the Zune. It will probably be fantastic, but will be already buried by boulders by the time it gets relevant (i.e. when all the features they need to implement will get implemented).
I know I'm not switching out of a Pre (assuming they disappear by end of year, and I really hope they don't) until WinPho 7 is out, but I would be lying if Android OS wasn't on the table for my next phone. Holding on to the Pre for me is such a problem after this bad news since I can't justify spending too much on apps (its just perfect that the Catalog opened up in Canada right around the time the death spiral started) and there are quite a few good games that even Android doesn't have that I want to get.
@RabidAppleFanboi
#1 paid app: beautiful Widgets
#1 free app: Google maps w/ navigation
Both of which iPhone users clamour for, yes some people do use 3rd party task killers, but maybe you need to refresh your top app list
@normanb20 I've never actually seen any iphone folks clamoring for these but hey, whatever.
@normanb20 Also, the best mobile web browser on any playform (XScope) is exclusive to Android, and comes in a free version.