Android - Why so popular? How Google earns billions through it?
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Google’s Android Operating System
It’s the most popular mobile OS, controlling roughly two-thirds of the mobile market. According to Google, it is used on more than 3 billion devices globally.
So, how did it become so popular?
1.) Open Source: Android is open-source, which means it’s free to access, and because the code is all public, there are tons of developers familiar with it which lets them tweak the code as per their requirements.
2.) Customisable Code: Android is highly customisable and thus it is not limited to an operating system for mobile devices only. It allows developers to customise the code to work with a wide variety of devices, such as home security systems, refrigerators, etc.
3.) Undemanding: Due to its ability to run efficiently on less expensive computer parts, it can scale more cost-effectively, which makes it easy to install even on affordable smartphones.
4.) User-Friendly: There was once a time when phones had more buttons than they do today. Before Android, there weren’t any mainstream open-source software options that let you swipe, tap, and select objects using your finger.
Android is FREE to use. How Google earns billions?
Android generates billions of dollars in revenue for Google. Android is an open-source operating system, third-party manufacturers like Samsung can modify and use it for free. Furthermore, Google doesn’t even sell as much first-party hardware as compared to Apple. Compared to the iPhone, the Pixel series has a much smaller market share. So how exactly does Google earn through Android?
1.) The Play Store represents Google’s direct revenue source for Android. It’s pre-installed on every single Android-based smartphone and tablet. The company takes a sizeable cut on transactions that take place through the play store. The total cost of every app or game you purchase from the Play Store is shared between Google and the developer. The exact number varies, but Google receives a minimum of 15% in exchange for hosting the app and providing it to users.
2.) Besides one-time app sales, the company also gets a cut from in-app purchases (With some apps, you can buy additional content or services within the app) and subscriptions if transactions are made through Play Store billing (Google built-in Payment Service). For instance, on buying a game pass on Call of Duty, you will be presented with a payment interface that is facilitated by Google and it gets a commission on every purchase.
3.) Android organically drives users to many other Google services, including search, YouTube, and Gmail. After all, when have you seen an Android smartphone without these apps pre-installed?
4.) Manufacturers that want to include the Play Store have to sign Google’s Mobile Application Distribution Agreement (MADA). It mandates the hardware makers to bundle the Google Apps and the Google Mobile Services (GMS) framework, which later prompts you to log into your Google account when you set up an Android device. As a result, the company can examine user behaviour and show personalised ads on other platforms as well. After all, Google is an advertising company.
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