When Google released Android, they had one idea in mind: to create an Open Source Mobile Operating System that they will share with all mobile manufacturers in the world. This would create a diverse environment of devices and the revenues would normally spread somehow proportionally among the manufacturers. However that’s not the case anymore, because Samsung just reported to have 95% of the Android profits in Q1 of 2013. This is not the first time it happens, as last year it accounted for 90% of the profits.
How is Samsung managing this performance
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Samsung has its entire strategy based on a very diverse range of devices that will cover the entire demand on the market. In the same time they are also focusing on creating the best devices on the market and always take the face of competitors with the newest specs. As long as Samsung maintains their current rate of launching new devices while still keeping people’s interest, the future looks bright for them. However they should start doing something about the design of their phones, as this is starting to become their number one threat.
Samsung covered $5.1 billion out of the total $5.3 billion of total profits in Q1. The rest is split among dozens of other competitors.
Is Samsung a threat to Google?
I don’t think Google ever wanted Android to help only one manufacturer become so prestigious. But now it’s become a reality and Samsung basically owns the Android smartphone market. This may pose as a threat to Google and their future decisions as Samsung may start demanding favors now that they own so much of the market. I think Google will handle this very carefully, though launching a Nexus type of Galaxy S4 isn’t actually helping them to slow Samsung down.
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