A Few Thoughts on Google in 2009
January 8, 2009 by Lisa Oshima | Mobile(0) Comments
In response to my last post, “Magikplp” asked what I thought might happen with Google in 2009. I suspect that Google will have a good year in 2009 but not a *great* year. Google will continue to be a force to reckon with and will remain the leader in most things web, but this will be a year of building new technologies and investing in the future, while navigating a tough economic climate – not necessarily a year for exponential profit growth (though I don’t think profits will be bad in 2009).
Google is making a huge investment in Android, which won’t pay off in the near future because mobile advertising hasn’t taken off yet. Google doesn’t expect to make money on their 30% cut off off apps, once they start allowing paid-apps on the Android Market. Here’s what Eric Chu (Android Mobile Platform Program Manager) said about it in a recent blog post:
Starting in early Q1 [2009], developers will also be able to distribute paid apps in addition to free apps. Developers will get 70% of the revenue from each purchase; the remaining amount goes to carriers and billing settlement fees—Google does not take a percentage. We believe this revenue model creates a fair and positive experience for users, developers, and carriers.