Google Concerned About Samsung's Android Dominance; Moto X Phone May Stem That Tide

Discussion in 'Android Tablet News' started by dgstorm, Feb 26, 2013.

  1. dgstorm

    dgstorm Editor in Chief Staff Member

    Jan 5, 2011
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    This story is not specifically Android tablet related, but it does share some interesting statistics regarding Samsung's new position ahead of Amazon in the Android tablet world, so we want to share it with you guys.

    A new report from the Wall Street Journal paints a worrisome picture at Google. Supposedly, Google is concerned that Samsung is growing far too powerful with their current Android hegemony, and may eventually leverage that power to renegotiate different terms. Currently, Samsung sells 40% of all devices that use Google's Android software. It's possible if this lead widens, Samsung may pressure Google to give them newer versions of Android ahead of other manufacturers, and/or might insist on more favorable mobile-ad revenue sharing deals. Here's a quote with some of Samsung's current market stats,

    Google's own head of Android Andy Rubin recently praised Samsung's phenomenal success with Android, but also shared these concerns regarding Samsung's Android dominance. He did also comment that Google's acquisition of Motorola serves as an insurance policy to potentially stem the tide of any one manufacturer becoming too dominant in the Android market. This simply expresses the complicated nature of the relationship between Google and Samsung, especially since Google previously stated they do not intend to show any favoritism toward Motorola.

    In the mean-time, supposedly, Google has been meeting with the other Android OEMs to assist them in becoming more competitive in the Android market. That way they can insure there is enough competitive market pressure to help curtail the explosive growth of Samsung. One other strategy that Google will likely soon employ to help make the Android market more competitive is the rumored Motorola X Phone. It's entrance into the market later in the year will be designed to compete both with the Apple iPhone and with Samsung's Galaxy S devices. This way, Google intends to help bring some market balance to the Android world by creating another exciting Android product that consumers can rally behind.

    [Editor's Note: Of course, some of these market fears could easily be fueled by analysts and news outlets themselves. Right now the relationship between Google and Samsung is strong, and it is really only pure speculation that Samsung might ever use their market dominance to pressure Google. It's entirely possible that Samsung could just as easily continue their highly profitable relationship without making waves. If their recent behavior of settling disputes amicably with LG is any example, that seems more likely.]

    Source: WSJ
    Last edited: Feb 26, 2013
  2. J515OP

    J515OP Super Moderator Staff Member

    Jan 6, 2011
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    Northern CA
    Tablet / Device:
    Nook Color, Nook Tablet 16GB, Vizio VTab, Nexus 7
    I appreciate the editor's note on this one. I read this article last night and would say I have to agree it is too early to tell what the relationship between Samsung and Google will become. I honestly think they don't know either. Right now they are in a mutually beneficial relationship and it would be difficult to see that changing because Samsung all of a sudden gets a big head or Google feels threatened. More than likely each will hedge its bets in case something does change later. Google has Motorola and Samsung has been reported as considering alternate OSes. Smart but doesn't indicate an imminent change of position on either side.
  3. arcone

    arcone Senior Member

    Aug 27, 2012
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    I think it is possible that Samsung will change or at least use its own OS at some point in the future.
  4. TechBalloon365

    TechBalloon365 Member

    Feb 26, 2013
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    Samsung's share is probably based and built on their flagship specific model, the galaxy smartphone range!Good to see the competition getting in there though.. HTC are at the moment one of the favourites of the big players :)

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