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?
@MRCUR I'm curious... what didn't you like about Android?
@vqro - I'm not quite sure to be frank. The overall OS just gave me a sense of unfinished thoughts and a messy experience. I was happy to finally have true, unrestricted multitasking, but I think that caused a horrendous experience at times. If you download the wrong app, say goodbye to your battery life.
I think the multitasking issue I mentioned really hits on my overall issue: I had to work FOR the phone in order to have a reasonable experience. I shouldn't absolutely need a task manager to have an okay experience. The average consumer really, really shouldn't ever need to worry about that - and I think that's something Apple understands and Google doesn't.
Otherwise my issues were with the N1 hardware actually. I had an AT&T 3G N1 which had horrendous issues with keeping 3G and WiFi. Along with that the screen had a horribly obvious purple tint on everything, not just while it was dim (which I've seen on other OLED displays).
I'm back on the iPhone 3GS now running the OS 4 beta. I think the user experience with Apple's mobile OS is far superior to that of Android for now. I really hope this changes in the next release since it sounds like Google wants to really take Android seriously, and make sure the fragmentation stops now before it's detrimental to the experience. Knowing myself and that I switch phones every few months (6 months is a LONG time for me to have a phone), I'm absolutely positive I'll have another Android device at some point.
Good for Google!
While I'm not personally sold on Android (I had an N1 for about a week), I think it's great to see all of these difference OS' competing for marketshare and mindshare.
pow.
Android ftmfw!
Great news for Android fans!! Ive seen a few of these around(all tech geeks of course - not like my aunt the hairdresser who has an iphone) and have been really impressed. I'm too attached to sense UI, so am hoping to get the HTC branded equivalent (Desire) instead. In the meantime, my trusty Cliq/Tattoo keeps me powering along android style.
Go Lil' Green Robot!! Let's hope HTC's Lawyers do you justice when the Apple Legalistas come gunning for you....
I'm glad to read Android is doing well but I've heard the Nexus One has some problems and that the after-sale service is atrocious . . . which gives me some pause because I'd like to get a N1 when my contract expires later this year
Does anyone have a link to listen to (or read) the summary of the earnings call?
I can't believe Chris didn't link it.
I mean, no source link... so where did this information come from? Out of Ziegler's butt?
@Johnny Rockets
Google Q1 2010 Earnings Call:
http://www.youtube.com/googleir
Earnings slides:
http://docs.google.com/present/embed?id=djnx46b_144hf6pq4cc
@funkyboss
Thanks!
I don't want to sound bitter or like an Apple Fanboy (which I am not, I don't even have an iPhone.) but 60,000 devices activated per day sounds very impressive but if you live in US and you happen to watch TV lately. Pretty much all Android phones are buy 1 get 1 free..... So, the number might be inflated.... Again it's just a number game. RIM was doing that for last Q, so even the shipments of blackberry was up but revenue was down due to "Buy 1 get 1 Free" deal.
I remember what we learned at Business School was "It's how you present the information, you can turn negative into positive."
@teco221
Google never intended to make any money from Android smartphone sales. All Google ever intended to do was to flood the smartphone market with a free OS they could get billions of dollars of ad revenue from. Android is their Trojan Horse of Ad Revenue. Eventually, you'll get Android phones for buy one and get two free. It really doesn't matter. Once Google gets AdMob cranking out ads through the Android OS, the sky's the limit. Every few minutes you'll see ads just popping up from nowhere. Android users will be bombarded with Google-generated ads. Google will own Android users, lock, stock and smoking barrel.
@MosesusedaniPad
Erm... except Android is open-source, so you can compile in (or leave out) bits as you see fit - quite legally.
Have a look at Cyanogen. Surely Apple is the company more likely to be in a position to force things onto your phone you don't want...
Is this the same thing? This was reported by Greg Kumparak on February 16, 2010.
Potential mania.
I really don't get why the Nexus One isn't as popular as the DROID. It looks far sleeker, has more chance of getting upgraded as the flagship model, and doesn't have that horrible neanderthal-friendly advertising.
@Dale P: It seems like its entirely do to lack of in-store presence and advertising. With both of those covered, I think it would destroy the Droid in sales, and give the iPhone a run for its money. Without it, its relegated to a nerd phone, since you really have to go and research it to find out how it is.
@Dale P It shows the lack of quality phones on the largest network in the country more than anything.
Google/Android needs to allow apps to be stored on the external memory so users are not limited to how many apps they can store on their phones and developers do not skimp on artwork/graphics/content to shrink their apps down to more internal memory biased size. This way the marketplace will see more game ports and other more feature rich apps being developed and potential customers will not shirk away from the products due to a fear of running out of space for their apps.
@andyroo77 root + apps2sd = simples!
@redmamoth Not all phones have been rooted (My desire was rooted but root/custom ROM solution hasn't been released yet). Regardless, I should have to root my phone in order to be able to store apps on the SD card because there are only 100Mb of internal memory for application storage, which goes very quickly. That would also allow for more sophisticated games to be developed for the platform. This is aggravated because manufacturers insist on putting preinstalled crap on the phones that can't be removed (Teeter, HTC what were you thinking?) this is the case for twitter, FB, Teeter, News, 8 different clock widgets etc on HTC phones ... what about people who don't use twitter, FB etc and don't want a crap game ... why should we sacrifice valuable/limited internal storage space? Make this crap OTA for people who want it. I think Google's decoupling of apps from core OS in Froyo should help this somewhat, but I want my phone to come as bare bones as possible with option to OTA download what I need, that is until I can put stuff on SD card.
Also, Android developers should really use the same (OS default) widgets and UI elements. Some applications really make me want to through up and remind of some horrible looking shareware for Windows that you keep using since the utility is great but at the same you want to tear out your retinas. UI guidelines should be stepped up and enforced.
Task management/switching should be refined. Yes, you don't really need a task killer on Android ... but sometimes you do because of faulty/stubborn applications that don't get killed by the OS. Some applications should have an exit option (even default browser sometimes keeps sucking juice if the webpage has an auto refresh option) even though I've sent it to the background hours ago. Double tap back button twice should exit/kill applications (like in ASTRO).
iEnvy yes the apple device makes me envious when my iPhone was jailbroken I had a theme where if was s mirror the only thing thwt was missing was the android monster Guy who looks awsome!
GOOD, maybe they'll finally release it for verizon!
I've had almost every type of smartphone out there and have never regretted breaking my AT&T contract to buy a Droid through Verizon. Love the platform and love the phone.
It's not promoting it too much cuz it doesn't wanna compete too hard with Motorola and it's other partners who will lose money if they throw their weight behind their own phone.
Great news. Good job Google!
assume that they are not counting the cost of software dev then, otherwise this wouldn't be profit making for sure
There must be some "creative accounting" involved in that profitability story really. Given that Google doesn't charge OEMs for licenses (and even reportedly pays them and carriers), it's somewhat hard to see how they're turning a profit. Probably by assigning a number to every ad impression Android users get when they visit google.com. And that's all well, but iPhone users generate them a profit as well. True, Google pays Apple for that, but they also pay carriers in the case of Android. The latter may be a smaller fee, but I fail to see how even 30 million Android users can generate enough profit from this to compensate for tens and hundreds of millions of dollars Google spends on the platform.
So the way I see it, the profitability story is BS. Exaggerated income, hiding costs via creative allocation, that's what it is.
Great success in promoting the platform anyway!
@hated one
Thanks.
I almost pushed the Nexus button last night - I even figured out what engraving I wanted (yes, it was a Bladerunner reference).
But I have the "what's the next android device" looming over head, not to mention this upcoming iPhone thing. Does that explain why I still 1st gen, still iPhone? Someone please break my iPhone and just hand me one. I can't decide which Android to get.
RE: iPhone platform competition...
I think this is great news. Apple innovated and blazed a trail, but now they're just getting big and bloated. We need more competition in the smartphone sector, and the fact that Google's NexusOne as well as the Android platform as a whole is doing this well is great news.
I
Yea the nexus is a great phone better than I phone
i love my android phone. I would never go back to windows or apple after this.
I hope Google and HTC are here FOREVER
IPhones are very well polished.... but after being on Android and it being open source, I dont want anything else.... there is so many possibilities with these devices.... custom roms keep my Droid from feeling outdated and overclocking helps too