Google feels the threat from Samsung

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Summary

Google is increasingly concerned about Samsung's dominant 40% market share within the Android ecosystem, fearing it could significantly impact Google's advertising revenue. This concern stems from the potential for Samsung to follow Amazon's path by developing its own Android-based ecosystem, thereby bypassing Google's native applications and services. Google's acquisition of Motorola Mobility was partly a strategic move to counter such manufacturer dominance, and it now hopes other OEMs like HTC and HP can challenge Samsung's position. Furthermore, Samsung's diversification into Windows Phone and Tizen platforms suggests a broader strategy to reduce reliance on Google's Android, potentially leading to demands for a larger share of mobile ad revenue.

In response to Apple's iOS system, Google and Samsung stood on the same side. But with the increase of market share of Samsung Android devices, Google begins to feel the threat from Samsung.

On MWC in Barcelona, a group of business executives said Google increasingly worried about Samsung after a private party. Because its equipment has occupied 40% of the Android devices, which could erode the Google advertising service. Google hopes manufacturers such as HTC and HP can challenge Samsung.

It is reported that on an activity on Google last winter, Andy Rubin, Google Android responsible person praised the success achieved by Samsung, and claimed that the cooperation between Google and Samsung was a win-win. But he also said that if Samsung continued to gain more market share, it would be a threat to Google. He said that Google's acquisition of Motorola Mobility was to deal with manufacturers such as Samsung.

According to data released by IDC, smartphones shipped by Samsung reached 215.8 million last year, almost all of them are equipped with Android system, Samsung took the global market share of 39.6%, while Apple's shipments were 136.8 million which took 25.1% of the market share. In the Android market, Samsung's share reached 40.2% in the fourth quarter of last year, Huawei rose to second place with the market share of 6.6%.


Google worried that Samsung would follow the path of Amazon, i.e, building their own eco-system with the open-source Android system instead of installing native applications from Google.

Google also worried that Samsung would ask for more money from the revenue gained from Google's mobile terminal (search ads, YouTube video ads, etc.),

Perhaps Samsung currently may implement multiple strategies simultaneously. In addition to the introduction of Android phones, they also release phones based on the Windows Phone system, while also introduce smartphones based on Tizen, Tizen is launched by Samsung and Intel to replace MeeGo platform.

There is no permanent friend and no permanent enemy, only permanent interest.

Source : http://www.36kr.com/p/201585.html

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