To: Road Walker who wrote (811 ) 1/21/2011 8:11:29 PM From: sylvester80 Respond to of 3170 Google Profits Up, Fueled by Android By Brian McCulloch | Fri Jan 21, 2011 12:06 pmmobiledia.com Google today announced a 29 percent surge in quarterly profits, due in large part to the continued success of its Android business. The Mountain View, Calif.-based company posted a fourth-quarter profit of $2.5 billion, up from $2.0 billion a year ago. Revenue increased to $8.4 billion, compared to $6.7 billion in the October-December period in 2009. "Our strong performance has been driven by a rapidly growing digital economy, continuous product innovation that benefits both users and advertisers, and by the extraordinary momentum of our newer businesses, such as display and mobile," said Eric Schmidt, Google's chief executive. "These results give us the optimism and confidence to invest heavily in future growth -- investments that will benefit our users, Google and the wider Web." During a conference call, Jonathan Rosenberg, Google's senior vice president for product management, said its advertising business now has two million publishers. YouTube revenue doubled, while its Android mobile operating platform was growing with 300,000 phones activated a day. The company has been rapidly expanding into the mobile market with its open-source Android operating system. Since 2009, Android has established itself as the main competitor to Apple's iPhone and iPad products. By providing phone makers and carriers with its open-source platform, Google has propelled Android into the world's number-two smartphone operating system, leapfrogging over Apple and trailing only Nokia's Symbian platform. Google search engine usage on Android phones increased tenfold in one year, translating into lucrative advertising revenue for the Internet giant. Building on Android's continued success, Google is set to release a new version of Android, known as "Ice Cream Sandwich," later this summer. It is also busy developing a new variant of Android for tablets, dubbed "Honeycomb," which will be coming to Verizon and T-Mobile on the Motorola Xoom and LG G-Slate, respectively. But analysts worry Google could lose momentum next month as Verizon releases the iPhone 4. Reports indicate that the carrier could sell as many as 9 million units -- many purchases that would have been for Android devices -- this year alone. In addition, amid these challenges, the company must now navigate a change in leadership. Co-founder Larry Page recently announced that he would be taking over the reins, in a shake-up at the top that sees Schmidt stepping aside to become executive chairman.