[metachor]

Android might be growing faster than iPhone, but how does that directly benefit Google? Apple makes money for every iPhone sold, but Android phones are manufactured and sold by other companies than Google. I thought Google gave away the OS for free (unlike Microsoft's strategy of licensing their mobile OS at a cost). Can someone explain to me how Google makes money on Android phone sales?

Please don't say "future search ad revenue from having more internet connected devices in the hands of consumers."

Edit: In answer to my own question, if the only profit Google makes from Android sales is search ad revenue, then according to this article (http://aseidman.com/2010/05/65000-new-android-devices-ship-e...), Google makes only $8.63 per Android device sold over the entire lifetime of that device. Article was found via HN, but no one has commented on it yet.

So apart from this meager search ad revenue, how does Google benefit financially from Android sales? I just can't figure this one out.

[dejb]

I never said it helps Google only that it hurts Apple. The fact that google can hurt Apple so much without a large direct profit motive is pretty telling about Apple's weakness IMHO.