Google is reportedly getting worried by Samsung’s rise in Android smartphone market. The search giant fears that the Korean manufacturer has become so big that it might try to renegotiate their deal, reports Wall Street Journal.
Journal writes that concerns regarding this increased dominance of Samsung are openly discussed in Mountain View. Android boss Andy Rubin has apparently acknowledged this concern at an internal Google event last fall and noted that Samsung could become a threat if it continues to gain more ground.
According to WSJ, Google’s Motorola acquisition might also have been an insurance policy against Samsung’s increasing dominance.
We have already rumours of this Motorola built X-Phone, on which Google is also working and it might be company’s attempt to take on Samsung’s upcoming Galaxy S IV smartphone, which given the success of previous Galaxy S series models is the biggest threat to Google.
According to estimates, Samsung shipped over 215 million smartphones last year and majority of them were running on Android. This number represents around 40pc of the global smartphone market.
If the number goes up further Samsung might demand a bigger pie of Google’s advertising revenue that comes out of Samsung Galaxy smartphones. According to the Journal report, Samsung is currently getting more than 10 per cent of this revenue and has already signalled that wants more.
Google is now hoping that new entrants in Android arena like HP, might be able to help it stem the rise of Samsung.
Top Image Credit: AP | Info graphic Credit: WSJ
this is what we call “Put your leg on Axe”. By not launching its Nexus phones & tabs officially in India one of the major smartphone user of Asia, they gave up totally to Samsung.
well said bob
Rightly said. Moreover the monopoly is always against the true and fair business practice in any market. So lets hope google will support some other players like moto and htc against sammy to maintain the balance in android space.
I can see history repeats itself. Long time ago IBM ignored software and concentrated on Hardware…and came to life our beloved M$. which took over the PC OS and software and till rules the roost.
IS the google/samsung story going to be the same? but here google ignored the hardware and took to software….the vice versa of the IBM/M$ story.
Google paying samsung ads revenue. I doubt it. Its not like people are buying mobile cause its samsung. It is due to Android. Otherwise Nokia would still would have been popular with wp8.
Actually, people buy it because of Google’s android, and because of Samsung’s marketing.
Samsung spends more on marketing their mobile devices than Apple, HP, Coca Cola, Dell, Microsoft combined spend on marketing all their products (http://tech.fortune.cnn.com/2012/11/29/samsung-galaxy-apple-marketing/)! So Samsung does have some right to demand more advertising revenue from Google.
But Google should definitely make Motorola come out with competitive devices running pure android, this will be a major USP for them.
10000000000% AGREED ARPIT
its because of android and also because samsung is the best option to go for if u wanna enjoy android 🙂
Now things are getting interesting… Without Android Samsung is nothing… Google will concentrate on Motorola to make high end device.. Samsung should think about it.. Google can ditch them any time… That’s why they are working on Tizen… Looks like Nokia took the right decision by not adopting Android…..