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Samsung might turning into a threat to Google
When it comes to Android phones Samsung is probably the most successful distributor of this type of smartphone and even though the alliance with Google has help prevent Apple smartphones to take over the market, people are now seeing some fears rising from Google as Samsung’s domination is becoming difficult to handle. The Korean Company may have become too powerful for its own good.
According to the Wall Street Journal, there have been reports from multiple sources that, the executives at Google might feel concerned about the growing dominance of Samsung over the Android market. About 40% of Android products sold are manufactured by Samsung. And now the electronic manufacturer is in position to ask for a greater cut of the advertising revenues generated by Google through the Android platform.
The journal reports that many people familiar with the kind of relationship between Google and Samsung did admit that members at Google fear that Samsung may ask for a greater share of the advertising revenues generated online through the Google search engine. One of the people said that in the past Samsung has received about 10% of the advertising revenues but it has now sent a signal to Google that it might request for a greater cut.
Apparently Google saw this coming much earlier and had prepared in advance for it. And this is why on August 15, 2011 it announced the acquisition of Motorola Mobility, another phone manufacturer. The idea is to create a defensive mechanism that will give Samsung the impression that Google always has the option to switch its to Motorola Android devices and compete for the market space. It is a way to keep Samsung in check.
The man behind Android, Andy Rubin, who happens to be Google Mobile Chief reportedly told others at Google that the acquisition of Motorola is a kind of insurance policy to make sure that manufacturers such as Samsung does not gain too much power over the Android platform.
Currently, top executives in the mobile industry are gathering in Barcelona and Google is also present, meeting with other companies negotiating deals that hopefully will help keep Samsung dominance at bay.
The possible outcome of the acquisition of Motorola mobility can be that Android phones produced by Motorola might be more affordable compared to others. Google can also count on its acquired company to protect its Android ecosystem. In the worse scenario the big search engine can still choose to produce its Android phone through Motorola alone. Motorola is now fully committed to Android. Actually Motorola has always shown it believed in the Android platform by making a big bet in 2008 on Android to be the only operating system to be used on all it smartphones.
Samsung might be dominant in the market for now but there are other Chinese companies also trying to get their share of it. Huawei has just released its thin Ascent P2 which it claim to be the world’s fastest phone and it runs Android. Lenovo is also taking over China with its affordable Android based smartphone. Google might want to strengthen its relationship with these companies too. One thing for sure is the war over smartphone dominance is not over yet.