Google: Android will pay off in the long term

Android may not be adding much to Google’s bottom line right now, but it’s a long-term bet, according to CEO and co-founder Larry Page.

Page said criticisms of Android’s lack of significant revenue showed a “pretty short-term focus”, speaking in a conference call for Google’s first quarter results.

“And I think it’s good to think about the longer-term issues,” he said. “We don’t get very many new operating systems, only a few in my lifetime, and I think they’re pretty important.”

We don’t get very many new operating systems, only a few in my lifetime, and I think they’re pretty important

“Android’s really about increasing the pace of innovation, usage of mobile devices and our ability to get a great user experience out there to our users, which I think we’re doing a great job of,” he added, saying a better user experience and more users will lead to “better economics for us”.

Tablet concerns

Page said Google remained “very excited” about tablets, but stressed there was “strong competition”. He noted that there has been some success on “lower-priced tablets”, but admitted some of the most successful aren’t on “the full version of Android” – notably the Amazon Kindle Fire.

Page suggested Android tablets would follow the smartphone model, and target cheaper devices. “We definitely believe there’s going to be a lot of success at the lower end of the market, as well, with lower priced products that will be very significant,” he said on the conference call.

Share split

Google posted a 24% year-on-year jump in revenue to $10.65 billion for the first quarter of the year. Net income climbed to $2.89 billion from $1.80 billion last year.

Google also unveiled a stock split, creating a new class of stocks so that the company can issue more shares without Page and co-founder Sergey Brin losing control of the company.

“By investing in Google, you are placing an unusual long-term bet on the team, especially Sergey and me, and on our innovative approach,” Page said.