Google CEO Eric Schmidt has said that the Android OS has broken even, raking in enough advertising revenue to cover its development costs.
When Google had first launched the mobile phone platform, a lot of people, including Microsoft CEO Steve Ballmer had dismissed it for having no revenue model as Google gave the software to its hardware partners for free.
Google however, had other ideas. By making itself the default e-mail, search and mapping client, the internet search giant looked to form a massive mobile advertising network, which has grown increasingly successful and become a thorn in the sides of Apple and Microsoft.
In an article published by Newsweek, Schmidt said that Android advertising revenue was covering its software development costs.
He also predicted that Android had the potential to power one billion smartphones in the future, which could result in $10 billion year-on-year revenue for Google, even if a person only spends $10 every year on Android services, like its online store which offers music and videos.
via Wavety
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