How much do you think google knows about you and how much data are you aware of deliberately sharing with it? Are you even aware of the data your smartphone, especially an android one, shares with google?
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With the amount of information that people share online these days, I'm pretty sure that Google knows alot about it's users. As for me, I'm quite sure that Google has a fair out of information on me due to the fact that i occasionally use the Google maps on my phone to navigate myself to some unknown areas in the city that I reside. I don't really share that much information on my Google profile but I know that they are aware of some of my information due to my android phone.
I'm aware that Google has a lot of affiliations with andriod smartphones so therefore it's not surprising that they can get information from you through your smartphone. It's inevitable because one way or another you might accidentally turn on an app that shares information or location and just like that, they'll have it.
Google has confidentiality and as long as they keep it that way I guess there'll be no problems.