Google (NASDAQ:GOOG) kicked off the I/O 2012 event yesterday with a keynote, and it turned out to be very impressive. Besides announcing the Nexus 7 tablet and demoing Google Glasses to the audience, it also announced some updates to the Google Play store, adding a ton of new movies, TV shows and magazines to the store, available for rent and purchase. It has added content and entered distribution deals with major partners like Disney, ABC, NBC, Sony, Paramount and others. 
Google also shared some statistics which point to the tremendous success of Android and its app store. Android now boasts of more than 600,000 apps and is seeing over 1.5 billion app installs each month. Google Play is expanding internationally and is now available in more than 190 countries with paid app support for most of them. It is trying to expand coverage of subscription billing and carrier billing in many countries to maximize app revenues.
Besides, it also launched some updates and features like Smart App Updates which bring delta updates to Android apps, encrypted apps as well as cloud messaging to deliver notifications to Android users.
While Google gives away Android for free, it stands to benefit if the increasing smartphone and tablet penetration drives search query volumes, which in turn drive search advertising revenue for the Internet giant.
We currently have a $680 Trefis price estimate for Google, which stands nearly 20% above its market price. Search advertising accounts for a major portion of its value.Notes: