Android's Indirect Business Model

In just one year, Android's share of the smartphone operating system market rocketed to 30 percent from five percent in late 2009. But the whole business model is indirect, as Google gives away Android for use by mobile handset suppliers, some of which clearly have benefited.

Android has returned Motorola and Sony Ericsson back to profitability. it can be argued. HTC, an early proponent of Android, is now considered a major handset player in the United States as well.

Millennial Media reported that in Android continued to lead in mobile ad impressions after overtaking iOS in December of 2010. Millennial, whose ads reach approximately 80 percent of U.S. mobile web users, reported that Android's ad impression increased by eight percent to 54 percent in January while iOS dropped four percent to 28 percent and RIM fell two percent to 14 percent.

Android applications have doubled since August 2010 as well.

Google makes money on advertising and app sales based on the popularity of Android devices, but nothing directly from Android itself, which is an open source product at this point.

Android: Google's Secret Weapon - Seeking Alpha