Google Worried Over Samsung’s Growing Android Dominance?
We’ve all been watching Samsung steadily grow its global brand and it looks like Google has been silently keeping tabs on the Korean manufacturer as well, specifically when it comes to Android. According to a new report by the Wall Street Journal, Samsung is now selling 40% of the devices that use Android, which puts Samsung into a prime position to renegotiate their current arrangement with Google.
Currently, Samsung takes around 10% of the ad revenue that it generates for Google, but they could demand for a higher percentage now that they dominate the Android marketshare. If Samsung decides to play hard ball and doesn’t get the cut they want, they could possibly abandon their agreement with Google and start working on their own version of Android. This scenario would be similar to what Amazon did with their Kindle tablets.
Android provides a lucrative revenue stream for Google by integrating their services like YouTube, Google search, and Google Play. If Samsung went the Amazon route and created their own platform, Google could stand to lose out on a significant chunk of revenue. Thus the legitimate show of concern on Google’s part.
According to the same sources, Google is hoping that their acquisition of Motorola will act as an insurance to keep Samsung’s growth from exploding and in turn hurting their mobile ad business. By creating a Motorola device, like the upcoming X Phone, Google hopes to regain some of Samsung’s marketshare in the Android OEM field and leveling the playing field.
Now we’re just left waiting to see what super device Google and Motorola plan to release. Let’s hope it makes the grade, otherwise Samsung might find themselves in the negotiator’s seat sitting pretty.
