July 28, 2010 | by Chris Smith
Here is how a CEO talks to the Wall Street Journal when he wants his company’s stock pumped up. Today, Eric Schmidt was quoted saying,
“If we have a billion people using Android, you think we can’t make money from that?”
This was in response to his statement and belief that Android could potentially make $10 billion dollars a year in advertising revenue for Google. Schmidt came to this conclusion with some very absurd numbers and small calculations of 1 billion Android users at $10 worth of ad revenue per user per year. Wow, that was easy to do. The fact is is that Android has been growing at a steady pace with an estimated 160,000 handsets activated a day. That sounds like a lot of phones and it is, but even at that pace it would take around “17 years to reach that goal”.
The Android onslaught, although crazy as it is now, could eventually slow down making a billion handsets completely out of reach. Many sites are spinning this saying that “Google is going to make $10 billion a year from Android”, when in reality this is just pure CEO fluff. I love me some Android, don’t get me wrong, but to say that “all we need is a billion Android devices in existence and poof! we have $10 billion” is a complete longshot.