Google’s Profits Higher Than Projected

On the outside, Google had a pretty rough 2012. We heard numerous reports of how they were involved in an anti-trust case, which alleged that they were placing their programs and sites ahead of their competitors in their search engine’s results. Then, reports indicated that Google was allegedly buying up patents that they never intended to actually use, so they could essentially prevent competitors from releasing cell phones with the patented design. When all was said and done, the anti-trust case was dropped. Google agreed to make some changes to their algorhythms that would create a more balanced playing field, and some changes were made to the patents.

Despite a rough year image wise, Google still managed to best the revenue figures projected by analysts; although the experts also said that the company’s revenue was still a little low. Google’s  Reports indicate that the bids on the advertisements people pay for each time they are clicked were down by about 6 percent, but they were up in price by about 2 percent during the fourth quarter of 2012.

With that being said, Google had plenty of other ventures going in their favor. Larry Page, CEO and co-founder of Google, seems very ecstatic about the company’s acquisition of Motorola Mobility last year. Motorola had been struggling as of late in the cellphone world, but Page believes his company has what it takes to give competitors a good run for their money in the mobile phone industry. Page said, “In today’s multi-screen world we face tremendous opportunities as a technology company focused on user benefit.” “It’s an incredibly exciting time to be at Google.” Of course, Google has also paired up as the default search engine with numerous phones, and they also had a deal with a manufacturer on the G1 and G2 phones.

Google reports also indicated that the holiday season was what allowed Google to do a great job of turning around what could have been a terrible year for their business. Reports indicate that the holidays are normally one of Google’s best revenue-producing season due to the increasing popularity of ecommerce holiday shopping. Of course, Google also sold a lot more advertisements during this time as retailers were wanting to expose their brands to as many customers as possible.

Google’s fourth-quarter profits were up by 36 percent compared to the fourth quarter last year.

Jason Russell is our resident technology expert covering everything technology related. He is a total technology geek and no one knows technology better than him.

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