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But revenue saw a 19 percent boost from the year-ago quarter

Google's second quarter earnings report is out, and while revenue is up from this time last year, earnings didn't look quite as good. 

For Q2 2013, Google reported $14.11 billion in revenue, which is a 19 percent increase from the year-ago quarter. However, Wall Street expected $14.41 billion.

Google's Q2 earnings took a tumble, coming in at $9.71 per share compared to $10.13 per share in the year-ago quarter. Analysts expected $10.78 per share for the most recent quarter. 

These numbers didn't seem to please investors. Google shares closed at $911 yesterday, which was down from a previous close of $919. According to Reuters, Google shares were expected to open 4 percent lower today after brokerages cut price targets as low as $860 from highs like $915. 

Another reason for the lower price targets is Google's changes to its advertising system in order to boost revenue from mobile users. The Android maker started offering the same ads on both PCs and mobile devices earlier this year, but the cheaper ad rates on mobile devices hurt the company's margins.

But Q2 showed that advertising revenue went up 15 percent from $11,902 billion in Q2 of 2012 to $12,061 billion in Q2 2013.

Earlier this month, it was announced that Google and Motorola Mobility were willing to spend as much as $500 million on Moto X advertising -- the first flagship phone by Motorola since being acquired by Google. 

Google's net income for Q2 came in at $3.23 billion, which represented an increase from $2.79 billion in the year-ago quarter. 

“Google had a great quarter with over $14 billion in revenue – up 19% year-on-year,” said Larry Page, CEO of Google. “The shift from one screen to multiple screens and mobility creates tremendous opportunity for Google. With more devices, more information, and more activity online than ever, the potential to improve people’s lives even more is immense.”

Some other interesting points from Google's earnings report is that there are now 750 million Chrome users; 900 million Android devices have been activated to date (with about 1.5 million each day); Google Play has had 15 billion app downloads, and the worldwide employee count fell from 53,891 as of March 31 to 44,777 as of June 30 (mainly due to the loss of Motorola Home). 

Source: Google

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wholly crap...
By retrospooty on 7/19/2013 10:26:49 AM , Rating: 2
900 million Android devices activated and now growing at 1.5 million every day. Simple math says that within 3 months there will be a billion.

RE: wholly crap...
By bug77 on 7/19/2013 11:06:07 AM , Rating: 2
Statistics don't include decommissioned devices, I think. But that only means it may take a little more than 3 months to pass 1bn mark. Not sure if it has a meaningful significance either way.

RE: wholly crap...
By retrospooty on 7/19/2013 11:12:57 AM , Rating: 2
1.5 million a day means a hell of alot of people are buying these phones. HUGE user base... That is pretty much all it means.

RE: wholly crap...
By Samus on 7/19/2013 2:23:49 PM , Rating: 2
exactly. is this all that surprising. decent free OS available on various handsets and tablets in every price bracket. go figure it has 1/6th the world using it.

RE: wholly crap...
By w8gaming on 7/19/2013 11:14:08 AM , Rating: 2
It means cheap devices sell and will continue to sell, since Android does have lots of good apps in its Play Store even though Apple has more. The biggest challenge to both Microsoft and Apple is how to price their products cheap enough to defeat this incredible price undercutting strategy. Looking back at history and you would see how cheap PCs taking over the home user market in spite of competitors such as Amiga or Mac Classic has better technology. The same will happen to mobile devices as Android is already a competent "good enough" platform with plenty of developers support. The low price strategy will win the war unless Microsoft and Apple do something quickly.

RE: wholly crap...
By retrospooty on 7/19/2013 11:47:41 AM , Rating: 1
" same will happen to mobile devices as Android is already a competent "good enough" platform with plenty of developers support. The low price strategy will win the war unless Microsoft and Apple do something quickly."

That is true, if you think about manufacturing, production, software, apps stores, etc as "a war", but it really isnt a war... It's more of an ever evolving game similar to most sports. Did the Ravens win hte NFL war last year? No, they won the 2012/2013 season competition, but now we are about tp start the next season and its anyone's game.

RE: wholly crap...
By Reclaimer77 on 7/19/2013 11:51:00 AM , Rating: 2
The reason Windows conquered the PC world is because it empowered OEM manufactures to make PC's.

The same is happening in the mobile world with Android. All the work is done for you. All you have to do is make a device that runs an OS that someone else does all the development work for you. Even better? It's free!

By comparison it's a relative nightmare if you wanted to partner with Microsoft to sell Windows Phone handsets. More importantly, it's less profitable for you to do so. Nokia's partnership with Microsoft has lead to such financial strife, there's been multiple talks with Microsoft to sell the company or large parts of it.

RE: wholly crap...
By retrospooty on 7/19/2013 1:52:17 PM , Rating: 3
"By comparison it's a relative nightmare if you wanted to partner with Microsoft to sell Windows Phone handsets. More importantly, it's less profitable for you to do so."

Tablets too. Can you imagine losing $900,000,000 selling tablets... In a day where tablets are selling like crazy. WTF, and that isnt even partnering with MS, that IS MS. LOL.

RE: wholly crap...
By ven1ger on 7/19/2013 2:24:51 PM , Rating: 2
That's one of the problems with Apple's ecosystem. And now MS. Because they want to control both the software and hardware segments, it is difficult to compete against hardware vendors that can produce stuff cheaper and make the necessary changes to hardware configurations that appeal to consumers.

DOS/Windows became the dominant system over Apple and other better systems but because the hardware could be produce cheaper due to the number of vendors able to make PCs. The Betamax vs VHS is another example where a better system lost out due to sheer number of VHS manufacturers, and cost.

As long as Android has vendors wanting to develop/manufacturer the units, it is difficult to counter this sort of strategy if you want to control everything. Which is one of the reasons that Apple and MS has resorted to Patent lawsuits because their current business strategy cannot compete in the Mobile market against Android.

RE: wholly crap...
By TakinYourPoints on 7/19/2013 8:39:13 PM , Rating: 2
The comparisons aren't completely 1:1 because the revenue streams are so different. Microsoft benefited massively from cheap hardware because they still made a mint selling Windows licenses. It didn't matter if it was a workstation or a data entry econobox, Microsoft made lots of money on both. Google doesn't profit nearly as much since they basically give Android away and allow carriers/manufacturers to do what they please.

The goal was ostensibly another window for advertising and data mining, but Google continues to make far more revenue and profit selling mobile advertising and mining data from iOS than their own Android, which is the result of the inverted distribution between high end and low end hardware between the two operating systems. Google's continued app development on iOS, often exceeding their own versions on Android, isn't the result of altruism or showing users how much better Google is: Its all about the money.

Microsoft is in a bad spot because they want it both ways.

They want license fees from OEMs, while at the same time they want to be on inexpensive hardware, while at the same time they want to compete with OEMs with their own hardware. Its a schizophrenic strategy that has resulted in low end hardware with no marketshare and no apps.

RE: wholly crap...
By TakinYourPoints on 7/20/2013 4:07:15 AM , Rating: 2
To be clear, this is all about how Android installations do not directly translate into revenue since Google doesn't make money on individual OS licenses, that's all.

Microsoft doubling Windows license sales every few years in the 90s and their resulting explosive increase in revenue is nothing like when Android installations increase in the same way. Google's revenue from data mining and advertising is what's important since they give Android away, and right now that stream lags far behind what they bring in from iOS and desktop operating systems.

Its also why Google doesn't put any resources into developing native Windows 8 RT or WP8 apps (they go so far as to close off things like the Youtube API to WP8). The money just isn't there.

RE: wholly crap...
By Tony Swash on 7/19/13, Rating: -1
"Well, there may be a reason why they call them 'Mac' trucks! Windows machines will not be trucks." -- Microsoft CEO Steve Ballmer

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