In year 2005, Google entered into mobile market by acquiring Android, with intention to lead the next generation of personal computing. Google wanted to stop domination of Apple's iPhone.
Google wanted to promote mobile local search and thus nearly all the phones at that time had dedicated search key. Slowly, the giant got interested in whole lot of activities and designed an ecosystem such that you are never away from any Google service.
Android is an open source project, but it earns huge amount of money for Google, following are some of the ways by which Android indirectly makes money for Google:
- Search Engine Traffic
- Play Store – App purchases
- Selling MP3′s
- Licensing technology to carriers and handset makers
In 2011, Google has publicly announced that they are targeting $10 per device per year, so you can guess the size of market captured by Google's Android.
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