Google hit the news last night for all the wrong reasons. Firstly when their printer inadvertently issuing their Q3 results hours too early and when NASDAQ was still in session. Secondly by issuing results that were well below expectations. But if you look behind the announcements you can see a more interesting trend.

Indeed, all the current analysis seems to show that the move to mobile is EVEN faster than expected. Google said that annualised revenues from mobile was now $8b compared with $2.5b a year back. That’s a pretty stunning change.

Gartner’s key theme for their Symposium ITExpo conference is the “Nexus of Forces”, one of which is mobile. Their prediction of “5B mobile devices and $52B in app revenues by 2015”

But what really spooked the market was Google’s 15% yoy and 3% qoq decline in advertising ‘cost per click’. It shows that Google is suffering the same problems as Facebook, whose shares were dragged down nearly 5% on the Google news. They are both experiencing lower revenues as users move to mobile.

So mobile is clearly becoming critically important, but even the companies most effective at extracting revenue from customers are struggling to make it work in mobile.


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