,

Google announces Q1 2013 earnings: $14 billion revenue

Google

Google has announced its first quarter revenue and income, with $14 billion revenue and $3.35 billion net income. This is yet another increase in Google’s revenue, with a 31% increase year-on-year. Google has also made nearly half a billion extra net income this year, compared to last.

This does seem to be rather uninspiring for investors, Google has been sitting on a $14 billion revenue stream per quarter since Q3 2012. However, with new markets emerging for Google in fiber networks, this may be the way to increase the stream.

Larry Page said this was a “very strong start to 2013”, he also added Google is currently working hard investing time and money into products aiming to help billions of peoples lives.

Google has a rich amount of revenue streams, but at the core is advertisements by an overwhelming majority. Google, in the coming years, could open more revenue streams by closing Android and licensing the operating system out and bringing music steaming to market.

Motorola still seem to be in the red, with the company at an operating loss of $271 million. Google has been dropping a lot of Motorola staff as the working and manufacturing system changes.

We have yet to see any real partnership between the two companies yet, the X Phone will be the first co-op. Google is still waiting for Motorola’s 18 month product cycle to finish, then they will establish a more affirmed role in the subsidiary.

Larry Page did hint the next Motorola smartphones will be almost unbreakable, saying in the call “when you drop the phone, it will not shatter”, this may affirm Motorola has been working on some new glass design for the next smartphones.

Google continues to push innovation and moonshot projects are ongoing at Google’s X Lab. We believe with Google Glass and Android, Google has a very critical and powerful role to play in mobile development over the next few years.

Currently, Google has about $50 billion, to spend on investments and acquisitions. In the next few years we expect Google to take a more active role in the development, deployment and assessment of the mobile and wearable market.