Apple Inc. Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Apple Inc.

AAPL 278.79

-0.7%

Dec 5 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Ryan Bartholomew who wrote (169036)	4/29/2014 1:33:44 PM
From: pyslent	Read Replies (2) of 213173

As for $10/year/user as a current base for Google, you have to define precisely which sources you're counting. Purely ad revenue coming from clicked mobile ads? Including app revenue? What about about services? And longer tail revenue from getting a user more locked into the "ecosystem" (via a Google account or otherwise)? I don't have enough insight into Google's business to do a bottom up analysis like that. Mine was a top down back-of-the-envelope calculation. Google's company-wide revenue is around $50B. There are roughly 2 billion smartphone users between iOS and Android. Therefore, $25/ mobile user is the upper bound to what Google could be generating from mobile, and that's assuming no revenue contribution from any of Google's desktop users. My guess was that between all possible sources of mobile revenue, no more than 40% of Google's revenue can be attributed to mobile, hence my guess of $10/ user. Even at $25/ user, it would be a drop in the bucket for Apple-- iPhone hardware currently monetizes users at $325 per user (albeit over 2 years).

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next