Google’s mobile investment is paying it off


In 2015, Google did a big restructuring with the formation of a parent company with the name Alphabet. According to latest financial reports, Google had fetched a profit of $21.3 billion from search and advertising business, which is an increase of 21 percent from the same quarter in 2015.

Google Mobile: The Big Push

The main reason for the substantial growth of the company is the bug push in mobile. While briefing media during the investor call, CEO Sundar Pichai asserted that mobile is the driving “engine” that pulls the business forward.

If you look at the products, the company had integrated YouTube, Gmail, Google+, Hangouts into mobile, which simplifies the life of people. Pichai added that search is smarter and more useful.

Commenting on the development, CFO Ruth Porat revealed that ad revenue from the mobile search was a primary reason for the surge in profits. Moreover, people are making use of their products from within the mobile to interact with their friends and colleagues. For instance, you can easily have a video chat with your friends anywhere in the world via Hangouts just by using an email id.

According to analysts, Gmail is used nearly 80 percent on the mobile than desktop. The simplicity is the main key to the success of the search giant.

Google, which itself is a small entity within Alphabet is one a ride with excellent income results. However, the majority of Alphabet’s profits still originate from the search giant.

Google and its failed initiative

Google’s initiatives like Nest, Fiber, and X also made little revenue but that was not on the expected lines. These products lost more than it actually gained. Financially, it earned $185 million in total but lost around $860 million in expenditure.

However, the company expects to earn substantial profits from these companies in the near future since the current status of these product units is only experimental.

Google and Artificial Intelligence

Google is gearing up to invest a lot of money in AI by integrating the technology from search to core products. Moreover, GBoard iOS keyboard and Photos leverage the rich potential of machine learning and natural language processing. These advancements are required to make search experience more relevant.

Pichai disclosed that the company is planning to focus on mobile live video streaming and is committed to pushing it forward. Recently, the company organized a live stream of the Champion’s league in the UK. Many companies are coming forward with live streaming their launch events.

Google 2016 Roadmap

Towards the end of 2016, you can expect the introduction of Daydream, Virtual Reality including exclusive smartphone designed and manufactured by the company. According to reports, the upcoming Google smartphone will be loaded with Android 7.0 Nougat.

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