How Samsung takes over the smartphome market and possible threats to Google

Like Dr. Frankenstein operating in his laboratory Google has created a monster and now the monster rushes furiously terrorizing smartphone industry or...


Like Dr. Frankenstein operating in his laboratory Google has created a monster and now the monster rushes furiously terrorizing smartphone industry or even life-threatening as a creator.

With the help of Android operating system and favorable conditions for cooperation Samsung Google offered an opportunity to become the dominant producer of smartphones in the world. In the year 2012 Korean manufacturer of devices Galaxy has shipped 215 million smartphones worldwide possessing approximately 40% of the world market. As a consequence, a number of competitors breathing its last, the courts are maintained patent wars, and offers a range of shops Android-devices impressive proportions.
According to The Wall Street Journal Google is now very concerned in Samsung ‘s dominant role among manufacturers of Android-smartphones. This position of strength enables Samsung to require Google more and more favorable terms under section revenue from mobile advertising market and install more applications on their own smartphones and tablets or even create a branch Android (similar to the one that made Amazon with the Kindle Fire) that finally moves Google out of the market segment.
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The reasons for Google to be careful are several:

Fragmentation in the market by Samsung

Take a look at the stock market of smartphone manufacturers. What do we see? Since mid-2011 the two companies subdued the whole market and the rest ones barely make ends meet. Samsung goes the first and Apple- the second (see the chart).

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Basically Google is concerned that Samsung squeezes out of the business of other viable Android-producers. It’s true that Google has benefited from the growth of Android in general but for the last two years this increase is mainly due to Samsung. Look at Motorola and HTC and compare the results.

In 2009 Motorola has released, as they say, the first popular Android-powered smartphone i.e. the original Droid for Verizon. It is sold well and quickly found favor with many ordinary consumers which for some reason did not agree with iPhone. The next popular smartphone Android based was HTC Evo brand and it has already started off real mobile Google. Evo was one of the first smartphones to get acquainted with the concept of consumer 4G, although technically it was not a pure 4G but WiMax and large screen. Then HTC has released Nexus One and Droid Incredible and finally became the main favorite smartphone industry at the time.

But here in the yard in 2010 Samsung launched it’s first significant Android-smartphone i.e. Galaxy S. The smartphone is offered four major operators in the U.S. Meanwhile it looked out Samsung was a bit late to the Android party since competitors were eager to push the device through separate statements on exclusive terms (iPhone was only at AT & T, HTC Evo – via Sprint and Incredible – at Verizon). Well,
Samsung has destroyed this model at one go.

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When deploying a family of Galaxy Samsung has worked with operators to adapt each unit to their requirements. For example, Galaxy S Captivate for AT & T was a little different from the model Fascinate for Verizon. But in fact it was just the same phone. Then real flood cropped up. Like the Big Bang, Samsung pushed its “Galaxy” though over the whole world with smartphone being of all sizes and shapes at different prices and quality.

Other players of the Android industry still did not understand what had happened by mid-2011 i.e. the year when Galaxy S II was launched it was too late to stop the wave. Model S II was considered to be the best Android-smartphone of the year competing with iPhone 4S as the best smartphone of the year 2011.  Meanwhile, HTC has struggled to repeat his earlier successes, but the stake on weak devices like Thundebolt. Motorola, although it has released an innovative Atrix with the title of best smartphone at CES 2011, did not have the necessary scale to compete with Samsung. By late summer 2011, Google bought Motorola and its patents for $ 12 billion

Territorial spread up by Samsung

Rising of Samsung confused not only the potential competitors in the Android segment but the entire smartphone industry so the most vulnerable players begun to leave.

The list of goals led the strongest smartphone players of the last decade like RIM which is now known as BlackBerry and Nokia. It is in their ancestral lands Apple and Samsung began building their empires. Thus, iPhone became the main curse for BlackBerry taking away market share in North America and Western Europe significantly reducing Company’s customers in the corporate and public sectors. In turn, Samsung has focused on Nokia depriving it with the title of the leading manufacturer for mobile phones in the world.
In early 2011, the new Nokia CEO Stephen Ilop wrote his famous note on the “burning platform.” Among other things, he wrote: “Chinese OEM-manufacturers produce a device much faster than, “is preparing a presentation in PowerPoint», as one Nokia employee is only partly in jest. These devices are fast and cheap being threat for us.” In fact, Ilop was partly right. Asian manufacturers such as ZTE, Huawei and LG made ​​all the cycles and the introduction of new products faster than Nokia could even dream. They created their own feudal empire in the world of Android. But the main threat to the Nokia did not come from China and South Korea.

Challenge to Apple in 2013

Apple quite soon understood that Samsung is the main threat to its flourishing mobile empire. In an effort to slow the Samsung but not to other Android-produces Apple went to court armed with a portfolio of patents.

Many experts in mobile technology grumbled at Apple because of patent wars. But maybe they should have to thank Apple for a much-needed containment of Samsung’s Empire. The Korean company  in turn has kept Apple too.

Google’s role or what we are standing for?

What can Google do? In many ways a strong Samsung company is perceived as the best friend for Google. Samsung boosts growth and penetration of Android pushed the limits of design and innovation. But when Samsung started cannibalizing other parts of the Android system Google starts having problems.

Google also has the ability to use your marketing department in favor of Motorola and other Android-producers. Largely due to take off Samsung smart marketing and pervasive devices and Galaxy S Note especially when she throws stones in the garden of Apple. Marketing and advertising budget Samsung is much more than the same HTC. If Google really wants the success of other Android-producers, it should help them in terms of advertising, marketing and development to raise the overall level of alternatives Samsung.

 

 

 

 

 

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