Google Android market worth $10 billion

Google Expert indicates that Mobile is the key in present Google’s 2011 market strategy. With core search growth maintaining a 15-20% annual growth, mobile (and converged devices like tablets) bring Google revenue growth over 20% next year. With total net revenues estimates of $27 billion in 2011 and $32 billion in 2012, a $ 10 billion gross revenue estimate for Android would represent a very significant business for Google.
PCs will continue to sell but the centre of gravity has shifted to mobile devices. And Google has smartly — and remarkably — positioned itself in the centre of that new universe. Arguably only Apple stands between Google and global mobile domination. Even on the iPhone most web searches are Google searches. So while the iPhone doesn’t drive as much revenue for Google as Android devices, it still fuels Google’s mobile growth.
What started as a vision of Google’s CEO Eric Schmidt looks now more and more like a reality.
Today Google’s mobile ad business is worth roughly $1 billion on an annualized basis. But it’s growing rapidly.
According to a discussion of the forecast in eWeek:
Using Google’s self-stated figure that its mobile ad business was operating at a $1 billion run rate through 2010, Piper Jaffray analyst Gene Munster said Google generated $850 million in mobile ads for the year. Android, Munster said, accounted for $130 million of this total, good for $5.90 average revenue per user (ARPU). For perspective, Google’s advertising totalled $25.77 ARPU, while its Web search engine accounted for $18.85 a head. . . Looking forward, the analyst said Google could have an average of 133 million Android users by 2012, each generating $9.85 per year on advertising, meaning Android would kick in $1.3 billion to the company’s ad revenues.
Regardless of whether the precise figures are correct it’s clear that mobile has quickly become a material contributor to Google’s bottom line. And it will only continue to grow.