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Google reaping benefits of Android

Fri, 07/16/2010 - 8:00am
Monica Alleven, Wireless Week

Leave it to Google to bring Pac-Man into the fun of a second-quarter earnings conference call.

Near the end of his introductory remarks yesterday, senior vice president of product management Jonathan Rosenberg noted that Google tracked an estimated 4.8 million hours of game play when it posted the Doodle with Pac-Man to celebrate the 30th birthday of the game on May 22, ending with his own "bloop, bloop, bloop" sound effects.

Games aside, many of the questions posed by analysts during the second-quarter conference call revolved around Android, which has seen a 300 percent growth rate in the first half of 2010 in terms of search. CFO Patrick Pichette said more than 160,000 Android devices are activated daily, or two every second. The Android Market now has more than 70,000 apps compared with the 30,000 it offered in April.

Many of the Android models lately have had no direct technical involvement from Google, and Pichette said that in terms of cost, Android is not material to the company. The Droid X, which went on sale yesterday, was developed by Motorola based on its work with Verizon Wireless.

Google executives also noted that beyond the third quarter, the company will no longer recognize any revenue or cost associated with the sale of the Nexus One, one of the models that Google did have direct involvement in creating. Nexus Ones are still being sold through various carrier partners, both in the United States and Europe.

Google declined to break out relative click-through rates on mobile vs. the PC. However, Rosenberg said mobile click-through rates go up 6 percent when ads include a phone number and 8 percent when a local address is included. On the mobile payment front, he suggested one of the main things that needs to change is the ability to do a transaction on the phone without having to go through a time-consuming credit card insertion process.

Google's second-quarter revenues came in at $6.82 billion, an increase of 24 percent compared with the second quarter of 2009. GAAP net income in the second quarter of 2010 was $1.84 billion, compared with $1.48 billion in the second quarter of 2009.

Google shares were down about 5.5 percent, to $467.99 at one point, in early morning trading.

More Broadband Direct 7/16/10:

•  NCTA, ACA oppose third way; ACA tosses monkey wrench
•  Report: TWC launches D3 in Charlotte
•  AT&T, Rainbow Media sign carriage agreement
•  ACA neutral on AllVid
•  Verizon snags classic cars in 3-D
•  Cox snags Frost & Sullivan award
•  Sony Ericsson profits on pricier handsets
•  Report: Mobile broadband revenue to double by 2014
•  Google reaping benefits of Android
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