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Oracle States Android Revenues, Does Apple Have an Edge?

There have always been speculations about the revenue contributions of the two leading mobile operating systems Apple's AAPL iOS and Google's Android. Recently, an Oracle Corporation ORCL lawyer told the court in a federal hearing (Jan 14) that Alphabet's GOOGL Google has reportedly garnered $31 billion in revenues from its Android platform since its release.

Oracle had filed a lawsuit against Google seeking royalties for the use of its Java programming language for developing Android.

Apart from the revenues, Oracle also disclosed that Google has raked in profits of $22 billion from Android. However, Oracle did not state the methodology by which it came up with the figures.

While the accuracy of these numbers is not yet confirmed, it has drawn attention to the much debated comparison between the two operating systems. It is widely speculated that iOS makes much more profit than Android, despite smaller market share. However, as the two companies operate on a different business model, it would not be wise to compare the profits. While Apple sells both hardware and software for iOS, Google's Android is used by other device makers (free of cost) who retain their profit. Google just benefits from being the default search engine and also a provider of a number of important apps on Android.

As regards to the disclosure by Oracle, Google it seems has urged the federal court to keep certain parts of the transcript away from the public domain saying "Google does not publicly allocate revenues or profits to Android separate and apart from Google's general business. That non-public financial data is highly sensitive, and public disclosure could have significant negative effects on Google's business."

Currently, Oracle has a Zacks Rank #4 (Sell). A better-ranked stock in the same space is Autodesk, Inc. ADSK , carrying a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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