Samsung’s dominance in Android may not be good for Google

February 26, 2013
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Last year Samsung shipped a little more than 215 million smartphones. Of that number, the overwhelming majority were running Android. Just for comparison, Apple shipped just shy of 137 million. This means Samsung is holding a 39.6 percent stake in the global smartphone market and Apple is holding a 25.1 percent stake. They key here, while this is good for Apple as they are the only manufacturer offering an iOS device, Samsung makes up just one piece of the Android puzzle.

With a quick thought, some may think that Samsung having such great success would be good news for Google, and Android in general. That however, may not be the case. In fact, according to a recent Wall Street Journal report, Samsung may be causing Google to worry. The report notes that "inside Google, concerns about Samsung are discussed openly." Given Samsung has such as high percentage of the Android market at the moment, they could try and renegotiate their arrangement with Google.

One of the potential items here is if Samsung were to try and renegotiate for an additional share of the revenue. It was said that "Samsung in the past has received more than 10% of such revenue." This side could be bad news for Google, however the success of Samsung could also lead to bad news for other manufacturers working with Android. You see, Samsung could eventually decide to negotiate for other perks.

Rajeev Chand, a managing director at boutique investment bank Rutberg & Co. believes that Samsung could try and get "better versions of Android software before other manufacturers." This is where the Motorola acquisition could come into play. The Wall Street Journal is reporting that the acquisition of Motorola Mobility could serve as a "kind of insurance policy against a manufacturer such as Samsung gaining too much power over Android." Of course, at the moment Google hasn't said anything publicly that would suggest they are trying to push Samsung out the door. Still, this does give an interesting take on how the success of one (Samsung) may not always mean success for everyone (Google and Android).

[via WSJ]


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  • anywherehome

    Funny nonsense paid by Microsoft? Samsung depends on Android so till Samsung innovates, rocks….. a little hiccup of Samsung’s innovations means fast consumer switch to HTC, Motorola etc…… so this article is base less :-P

  • Steve Allen

    Yea, I don’t quite get this either. Google provides Android to Samsung *for free* (sort of). They make money off app sales from the normally installed Play app store, but samsung (like Amazon) already has their own app store. And I don’t think google makes any money from those annoying ads on some apps (though maybe they do?). And google owns the OS. If anything, such a move by Samsung would probably cause google to up the ante with the other vendors (or possibly worse – try to sign an exclusive deal with Samsung which would all but kill it I think).

    I’d be more concerned that Samsung would start additionally shipping and using another OS as their main OS (like what, I have no serious suggestions :) I shudder to think its more likely (though still very remote) that they’d start making iOS clones under a deal with Apple to not have to pay the bazillions of dollars they seem to keep loosing to apple in court. Or maybe both..

    • LLOYD

      you have NO ideas what you’re talking about.

      “exclusive deal, ios clones, bazillions of dollars (1.05B EXACTLY and it awaits a new appeal), other OS.”

      READ about Android first.

      What other OS? Firefox OS? Windows Dumbphone? ios from 2007?
      Tizen? WebOS? Bada? They’re pure CODE, they’re NOT OSes.

      OS = INNOVATIONS.
      Android = OS.

  • LLOYD

    TOTAL Bullsh*t.

    Microsoft-Apple’s paid FUD.
    They have NO ideas how to compete with Google and Android beside how to spread weird illogical BS FUD via credible sources to look better and to hurt Android.

    Poor WSJ.
    Paid news everywhere. Apple and MSFT work hard on them.

    “One of the potential items here is if Samsung were to try and renegotiate for an additional share of the revenue. It was said that “Samsung in the past has received more than 10% of such revenue.” This side could be bad news for Google, however the success of Samsung could also lead to bad news for other manufacturers working with Android. You see, Samsung could eventually decide to negotiate for other perks.”

    ***
    What revenues?
    What “additional share”? Additional to WHAT?
    Google pays SAMSUNG? LOL.
    What negotiations? What “other perks” and “for other manufacturers”?
    What does mean “the newset software”? Before releasing it? LOL.
    What “such revenue”? Google’s own Ad revenue, getting Android OS for free?
    NONSENSE.
    ***

    Google’s revenues/profits = Google’s revenues/profits.
    SAMSUNG’s revenues/profits = SAMSUNG’s revenues/profits.

    ———————————————————————————————————–
    The author/publisher of this crap forgot about Open Handset Alliance completely.
    Android is the world’s most popular OS.
    Everybody can take Android, customize it as they want and launch everything they want!
    Android is the world’s largest open-source PROJECT.

    Android is a collaborative project, it’s NOT SAMSUNG’s OS.
    ———————————————————————————————————–

    Other Android manufacturers STRUGGLE because they make CRAP products, do weird things, launch wrong products, can’t differentiate themselves, make AWFUL cheap designs, cheap NAMES and not because SAMSUNG has exclusive deals.

    Google just need to return Motorola to profits. Hi-end Motorola. Xphone. Xtablet.

    SAMSUNG = tech innovations, it grows because almost everything else looks/feels and works WORSE.

    ____________________________________________________________________________
    Nobody needs Windows Phone, Windows and Microsoft.
    Apple = anti-innovations.

  • Magnus100

    I believe this article is pure FUD.

    BTW, HTC had their chance to turn the tide last year but failed. This year they released an even worse offering. How hard is it for them to realize that battery life and storage are very important and that if you can’t improve the software then leave the thing alone. They’ve remained tone deaf to what consumers really want.

    And it’s a shame that Motorola also hasn’t realized that locking your phone to one carrier is the kiss of death. Hopefully now with Google in the driver’s seat, they can finally get it right with best software, best battery and very beautiful and premium quality build.

    As far as I’m concerned Samsung has it locked in for me with the Note series of devices. After using the Note, it really doesn’t matter what any other phone has to offer, unless it at least matches the functionality of the Note, it would be pretty useless for me. Nothing right now comes close to the functionality of the Note. Other OEM’s continue to add useless gimmicks to the software, while Samsung adds real functionality and versatility.