Google Bullish on Mobile as Android Devices Top 190M Worldwide in Q3


Google (NAS: GOOG) executives couldn't contain their enthusiasm for mobile on the company's third-quarter earnings call. "We see Android growing like gangbusters," said CEO Larry Page as he proceeding to provide the investors on the company's earnings call with a rare glimpse into the firm's mobile business. Page said that the total number of Android devices activated worldwide has reached 190 million and added that mobile revenue run rate is now $2.5 billion, up from just $1 billion a year ago.

In June, Google reported that the company was activating about 500,000 new Android devices per day and that activations were growing at a rate of 4.4 percent per week. There are more than 300 Android device models in all -- 36 OEMs are manufacturing Android products, available across 215 operator networks spanning 112 countries.

Google didn't provide many details on where the mobile revenue is coming from but said that it expects to grow its mobile business. "Advertisers have landing pages that are mobile-enabled, and we see ways we can improve the algorithms," said Susan Wojcicki, senior vice president of advertising at Google. "We think there are lots of formats that we can optimize for mobile for a greater user experience."

Page wouldn't comment on Google's pending acquisition of Motorola Mobility (NYS: MMI) because it is still in the review process; however, he did say that the company is serious about protecting the Android operating system from patent lawsuits and wants to see it continue to be successful. He added that while a lot of competitors are trying to attack Android, the company has seen no signs that those attacks have been effective. "And ultimately, we think that other companies' actions there will alienate their customers and their relationships with the other companies," he said, according to a Seeking Alpha transcript. "So if anything, we see our strategy is getting stronger there."

Google reported revenues of $9.72 billion for the third quarter, an increase of 33 percent over third quarter 2010. In addition, the company said Google-owned sites generated revenues of $6.74 billion, or 69 percent of total revenues in the third quarter.

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