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To: Ryan Bartholomew who wrote (165788)2/10/2014 3:50:30 PM
From: HerbVic  Read Replies (2) | Respond to of 213182
 
So what you're saying is that by owning "YouTube, Gmail, Android, and literally dozens of other products," [sic] that constitutes diversification. Perhaps a little, but the business model is still the same. They provide a free service, attaching ads as a revenue generator. I'm not saying that just anyone can reproduce the model. It would require a well funded public corporation with a great deal of cachet. But, I do think that the stability of the profits are a bit over rated. And, since I'm not as familiar with Google, do you know approximately what the breakdown is between the different revenue resources? I would expect that search is the dominant one with YouTube a distant second followed by fractional contributions from the rest. But, I'm just guessing.



To: Ryan Bartholomew who wrote (165788)2/10/2014 5:08:05 PM
From: yofal3 Recommendations

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  Respond to of 213182
 
Indeed, almost all their profits are derived from advertising
From a recent revenue comparison…


"Two years ago, Google was a one-trick pony, with its revenues coming almost entirely from advertising. According to its 2011 annual report, "Advertising revenues made up 97 percent of our revenues in 2009 and 96 percent of our revenues in 2010 and 2011." That picture changed slightly with Google's attempt to move into hardware manufacturing via its acquisition of Motorola Mobility, as you can see in this chart. But the pending sale of Motorola Mobility to Lenovo will shift things back to nearly the way they were. The "Other" category, which includes digital content and non-Motorola hardware products, is still a tiny fraction of the company's revenues. After the Lenovo transaction closes, Google's advertising revenues will go back to being more than 90 percent of its total."

Apple and Microsoft's at the link below…

zdnet.com