Google has created Samsung through its Android operating system and friendly partnerships, making it the world's largest manufacturer of smartphones. In 2012, Samsung sold nearly 215 million smartphones, accounting for 40% of the global market. During its rise, Samsung has left behind a series of devastating competitions, lawsuits, and an extremely impressive long tail of Android devices.
A report from the Wall Street Journal shows that Google is very concerned about Samsung's dominance among Android phone manufacturers. Samsung ’s favorable position allows it to have more bargaining chips with Google, get a slice of the profit from mobile advertising, install more of its own custom apps on mobile phones and tablets (while marginalizing Google ’s own apps), or Develop a brand-new Android branch (as Amazon did with the Kindle Fire), completely out of Google ’s control.
Google has reasons to worry, and it ’s more than that.
Torn land
Since mid-2011, two companies have controlled the entire smartphone market, Samsung and Apple, and all other companies are just minor supporting roles.
Google ’s biggest concern is that Samsung is squeezing out other Android manufacturers. Google is satisfied with the overall growth of Android, but the growth in the past two years has mainly come from the support of Samsung. You can see the tragedy of Motorola and HTC.
In 2009, Motorola had probably the first popular Android smartphone, and this phone immediately became a favorite of ordinary consumers and technology geeks who did not match Apple's iPhone. The next popular smartphone with Android system is HTC's Evo, which really gave Google a place in the mobile phone market. Next, HTC launched Nexus One and Droid Incredible, creating a craze that made it the darling of the smartphone industry at the time.
It was in 2010, and Samsung had just released its first Android smartphone, the Galaxy S, at four major operators in North America. It is considered a latecomer to the Android camp. At that time, smartphone manufacturers tended to distribute equipment to a single operator with a unique partnership.
However, Samsung broke this stereotype and never looked back.
In order to deploy its Galaxy product line, Samsung cooperates with operators to customize each mobile phone according to their requirements. Then the flood came. Like the Big Bang, Samsung brought Galaxies (galaxies) to the world. Galaxy series has different sizes and shapes, different prices and quality.
Other Android manufacturers didn't know what beat them until the Galaxy S II came out in mid-2011, but it was too late and they could no longer stop Samsung's torrent. At the end of the summer of 2011, Google acquired Motorola and its patents for $ 12 billion. Samsung continued its shotgun approach and at the same time released a new flagship product.
Rodeo
Samsung's rise has not only knocked down potential competitors in the Android camp. The entire smartphone industry has to be on alert. The most vulnerable player fell first.
At the forefront of the target list are the most solid smartphone manufacturers in the last decade: RIM (now BlackBerry) and Nokia. Starting from these lands, Apple and Samsung began to outline their own kingdom. The iPhone is a big concern for BlackBerry. In BlackBerry's home base, North America and Western Europe have stolen market share and captured its corporate and government customers. Samsung has concentrated on driving Nokia out of the world's number one mobile phone manufacturer.
In early 2011, the new Nokia CEO Stephen Elop wrote: "As a Nokia employee said half-jokingly, a Chinese OEM manufacturer made a device much faster than the time it took us to modify a PowerPoint. They were quicker And cheap, and they are challenging us. "
What Elop said was partially correct. Asian manufacturers are eating Nokia's breakfast (and lunch and dinner), but Nokia's biggest threat is not from China, but from South Korea.
In the beginning, Samsung was able to use its Galaxy series in late 2011 to overtake Nokia in the smartphone segment. Considering that Nokia has been unable to create any valuable products against iPhone and Android for several years, this is not an extraordinary achievement. Since then, due to the decline in the market share of non-smart phones and Nokia's advantage in emerging markets began to weaken, Samsung overtook Nokia's share of the entire mobile phone industry in late 2012. When Nokia stormed, considering its next move, and eventually invested in Microsoft and Windows Phone, Samsung attacked its key.
It is worth mentioning that Apple recognized early in the morning that Samsung represented the greatest threat to its growing mobile kingdom. In order to restrict Samsung (and to a lesser extent, other Android manufacturers), Apple used a large number of patents as weapons and went to court.
In fact, Apple's patent case against Samsung is a strategy to limit the exponential growth of Galaxy. Many people in the technology critics blame Apple for its powerful patent litigation. Perhaps they should thank Apple, which became a much-needed obstacle to Samsung's expanding empire. Accordingly, Samsung has also hindered Apple's expansion.
No matter what, we are facing a duopoly situation of smartphone manufacturers. And it's not good for business.
Google's role
Strictly speaking, it's not entirely Google that made Samsung, but it made Samsung what it is today. And now Google is trembling in the face of this behemoth's fear.
What can Google do? In many ways, a powerful Samsung is the best friend Google can have. Samsung stimulated the widespread use of Android and impacted the obstacles to design and innovation. However, when Samsung started to nibble on other parts of the Android ecosystem, Google had problems.
The answer to this question, to some extent, starts with Motorola. Google began to realize that the acquisition of a once influential mobile phone manufacturer must not be limited to only 17,000 patents owned by Motorola. What Google wants most is to start making and manufacturing mobile phones on its own like Apple, in order to make a profit. However, as of today, we haven't seen any product that Motorola launched after it was acquired by Google that will make consumers excited to abandon Samsung.
This may have changed this year. This year we may see the first Motorola Android device designed completely from the beginning to the end under the influence of Google. Google also has the opportunity to use its marketing department to benefit Motorola and other Android manufacturers.
If Google really wants to see other Android manufacturers perform well, it needs to start providing auxiliary support in advertising, marketing, and developers to increase the impact of non-Samsung manufacturers. That creates a dilemma. If Google actively helps other Android manufacturers, there is a risk of alienating Samsung, and it will lead to the potential dangers that Google fears, as the Wall Street Journal reported.
The bigger question is: Can Google really take any measures to control Android? Google cannot stop Amazon from developing this branch of the operating system and get rid of its own control. So can it really take any measures to limit Samsung's advantages?
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