Google Inc (GOOG)’s Surprising Progress in PC Hardware

Page 2 of 2

Bottom line

IDC has projected a decline of 7.8% in PC shipments this year. But, Google Inc (NASDAQ:GOOG) likes those numbers because it knows many people just don’t desire regular Windows-based PCs anymore. The company has seen 19% year over year growth in revenue despite a 6% drop in cost per click. In the past year, it has made almost $1 billion on combined hardware alone. Google knows ad revenue generation on desktops and laptops.

So, that’s where the company is going to grow. And who knows? Maybe Chrome OS will come to tablets and other hybrid devices. It seems that the company knows what to do with a larger screen. Just look at most of Google Inc (NASDAQ:GOOG)’s offerings — search, Gmail, and YouTube. Those services are built for bigger screens, and for Google, it seems clear that bigger screens mean more profit.

Daniel Cawrey has no position in any stocks mentioned. The Motley Fool recommends Google. The Motley Fool owns shares of Google and Microsoft.

The article Google’s Surprising Progress in PC Hardware originally appeared on Fool.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2