But every Android phone out there is another personal information hoover for Google that produces them money, so yes, they are profiting off of every unit sold that ships with the Google-branded applications provided the users use them and their locational services, which most users do because otherwise Android ships rather spartan to the point of urging you to use them.
People who believe Android is 'free' do not understand what's in it for Google. If this was not the case, then lawsuits like Skyhook wouldn't exist: http://www.theverge.com/2011/05/12/google-android-skyhook-la...