Google CEO says mobile revs small but growing fast

SAN FRANCISCO Wed Sep 29, 2010 9:24am IST

The logo of Google is pictured in front of its former headquarters in Beijing July 12, 2010. REUTERS/Jason Lee/Files

The logo of Google is pictured in front of its former headquarters in Beijing July 12, 2010.

Credit: Reuters/Jason Lee/Files

Related Topics

Priyanka Gandhi Vadra, daughter of Congress party chief Sonia Gandhi, adjusts her flower garlands as she campaigns for her mother during an election meeting at Rae Bareli in Uttar Pradesh April 22, 2014. REUTERS/Pawan Kumar

Election 2014

More than 814 million people — a number larger than the population of Europe — are eligible to vote in the world’s biggest democratic exercise.  Full Coverage 

SAN FRANCISCO (Reuters) - Google Inc expects mobile searches to generate most of its revenue eventually, but it could take a long time despite growing at a rapid clip, Chief Executive Eric Schmidt said on Tuesday.

Searches made on Android-based smartphones and other mobile devices are growing quickly but will remain immaterial to the company's bottom line for some time to come, he said.

Searches on Android phones -- made by companies including Motorola Inc, HTC Corp and Samsung Electronics -- more than tripled in the first half of 2010, he added.

"Eventually we think mobile will be the majority of the searches and the majority of the revenue, but it's a long time," he told an audience at the TechCrunch Disrupt conference in San Francisco.

For Google, the world's No. 1 Internet search engine, making the transition to mobile phones is key as it seeks to maintain and expand its nearly $24 billion online advertising business. Its Android software, offered free to cell phone vendors, has experienced dramatic growth since coming to market two years ago.

More than 200,000 Android phones are sold every day, according to Google.

HIGHLY LUCRATIVE

Since Apple Inc launched its iPhone in 2007, the mobile market has become a prime battleground for technology companies, as consumers increasingly use their phones to send email, listen to music and access social networking services.

Schmidt spoke highly of 4-year-old microblogging sensation Twitter, which is attempting to mold its more than 145 million user base into a sustainable, revenue-generating business.

Google has struggled to to create a major hit in social networking, where consumers are spending increasing amounts of time on Twitter, Facebook and LinkedIn.

"Twitter should be able to come up with advertising and monetization products that in our opinion are highly lucrative," Schmidt said. "We think they're going to do very, very well."

Some Silicon Valley investors believe Google or rival Apple could acquire privately held Twitter in order to establish a position in social networking.

"Is there a scenario where you think you don't have to buy Twitter in the near future? I don't see it," Dave McClure, cofounder of venture capital firm 500 Startups, said of Google.

"Whatever your math is, you better do it soon, because you're getting killed by Facebook."

Schmidt also said its Youtube online video service receives 2 billion "monetized views" every week and that Google's Chrome browser, which competes against Microsoft Corp's Internet Explorer, boasts more than 70 million users.

(Reporting by Noel Randewich; Additional reporting by Alexei Oreskovic; Editing by Richard Chang)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Election 2014

Election 2014

Kashmiris wary as Modi challenges for power.  Full Article 

Facebook's Performance

Facebook's Performance

Facebook Q1 revenue grows 72 percent on rising mobile ads.  Full Article 

Earnings Season

Earnings Season

Bharti Infratel Q4 net profit jumps 64 percent.  Full Article 

Monsoon Forecast

Monsoon Forecast

South Asia monsoon seen below-average to average in 2014 - WMO.  Full Article 

Solar Dispute

Solar Dispute

Green groups urge U.S. to drop solar trade case against India.  Full Article 

Oil Imports

Oil Imports

India to make May-July oil payments to Iran - sources.  Full Article 

Rice Exports

Rice Exports

India may cede top rice exporter spot under Southeast Asian price onslaught.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage