WSJ: Google Holds Secret Meeting to Keep Samsung's Android Power in Check
February 26, 2013 3:01 PM
comment(s) - last by
Somewhere Tim Cook and Stephen Elop are laughing
The Wall Street Journal
that Google Inc. (
) is holding an emergency summit at the 2013 Mobile World Congress (MWC) in Barcelona. At the mobile industry's top trade show, Google is reportedly meeting with Android phonemakers like HTC Corp. (
) and Hewlett-Packard Comp. (
) about fighting back to prevent Samsung Electronics Comp., Ltd. (
) from gaining too strong a dominant position in the Android market.
I. One Company to Rule Them All?
Samsung currently accounts for 40 percent of Android sales --
more than any other company
. It's also easily the most profitable of any Android device-maker.
Some analysts think Google is fearful that Samsung will leverage its powerful position to try to get a bigger cut of Google's slowly growing mobile ad revenue stream. Sources claim that Samsung currently gets around 10 percent of the revenue from clicks on its devices. A bump to Samsung's take-home percentage could help offset
per-device payments it has to make to Microsoft
) for intellectual property licensing.
hopes to make $8B USD in 2013
via mobile advertising
, Inc.'s (
) iPhone and Android.
Andy Rubin reportedly warned Android phonemakers not to let Samsung get too powerful.
[Image Source: The Next Web]
At a closed-door event, the
reports that their source was in attendance and heard a presentation by Android Chief Andy Rubin. Mr. Rubin allegedly praised Samsung's success, but warned that it could be a "threat" if it furthered its dominant position. Google is reportedly eyeing offerings like HP's $169.99 USD upcoming Android slates.
Samsung in 2012 was the
biggest smartphone shipper
, shipping 215.8m smartphones, almost all of which ran Android. By contrast, Apple "only" shipped 136.8m iPhones. Samsung hopes to ship
In 2011, Samsung only accounted for 15.6 percent of Android tablets, but in 2012 it advanced to 27.9%, becoming a major player
Interactive Data Corp. (
). Samsung passed Amazon.com, Inc. (
) in Q4 2012 to become the largest Android tablet seller (Amazon uses a modified Android build in its "Fire" tablets). Samsung just revealed the
Galaxy Note 8.0
, a hot tablet that is vying with Apple's iPad Mini.
II. Samsung Could Seek Alternatives
If Samsung reacts badly to Google's efforts to keep it in check; it could jump ship to one of a couple rising platforms. It
already has made Windows Phone devices
and has a good relationship with Microsoft Corp. (
). Alternatively, it could opt to test the waters with
a Mozilla OS device
(Samsung's South Korean counterpart LG Electronics, Inc. (
) is doing precisely that). And
then there's Tizen
, a mobile Linux kernel that Samsung is co-developing with Intel Corp. (
For now, Google and Samsung are united by their common enemy: Apple. Samsung will launch its counterstrike against the iPhone 5 on March 14 --
the Galaxy S IV
In March Google and Samsung will collaborate on the massive Galaxy S IV launch.
[Image Source: AndroidSpin]
leaked spec sheet
has been circulating which claims the hot handset will pack:
• 4.8-5.0-inch 1080p display
• Android 4.2 Jelly Bean
• 1.9GHz Qualcom Snapdragon 600 processor
• 2GB RAM
• 16/32/64GB storage options
• Removable SD card slot (up to 64GB)
• 13MP rear-facing camera, w/ "Orb" technology for compressed panorama shots
• 4G LTE support
• Multi-purpose / Dedicated camera button
• Bluetooth 5.0
• 3100 mAh battery
Will the Galaxy S IV be the last major effort between Google and Samsung? It's possible, but at this point it's likely the pair's ties that bind are stronger than those that separate.
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RE: Android is winning (C) Tony
2/27/2013 3:30:44 PM
Thanks for being honest Tony :) I disagree on Wall Street being irrational though, looks like Apple stock indeed did not deserve to hit $1000, not because Wall Street is crazy but because Google and Samsung put up an excellent fight against iPhone and started to mount a serious pressure on iPhone in 2012, and Wall Street just reflected this phenomenon in the Apple's stock price.
Besides, the whole market for smartphones and tablets became much more crowded with Google, Samsung, Motorola, BlackBerry, Microsoft, Sony, HTC and LG offering quite polished products. They all learned from Apple's tight integration, strong retail presence and overall product polish and started to catch up. So Wall Street eventually realized that the huge gap between Apple and the rest of the pack just got narrower.
I can tell you that I tested quite a few smartphones myself, including playing with a BB Z10 recently - the gap between older generation of Android 2.3, WinPhone 7.0, BB7 and their modern versions - Android 4.1, WinPhone 8.0 and BB10 is a huge generational shift, for ALL of them. It's like Apple gave a huge jolt to all the sleepy OEMs in the world and everyone suddenly realized Apple is an existential threat, so all of them, including BB and MS and other similar slowpokes/former monopolists - all of them started to move real quickly now, MS suddenly realized that stuffing old Win95 shit into phones won't cut it, BB dropped their MS-DOS-in-the-phone called BB7 and reinvented themselves with QNX which is real slick and a joy to use now, especially for productivity/office people, businessmen who multitask and jiggle many things in their phone, BB10 is solidly pwning everyone including WP8 and iOS in those areas.
Wall Street is not dumb and they have noticed all this and... they noticed that while other sleepy OEMs underwent huge generational leaps (Android 2.3 to Android 4.1 is also a kind of generational leap) Apple did NOT do anything like that. There is nothing to improve in Apple products, they can only iterate and hone them but that's it. iPhone 5 is not a revolution or even a substantial improvement. You take 4S and 5 in your hand and... they are all the same. The difference between WP7.0 and WP8.0 is huge, the difference between BB7 and BB10 is even more than huge, this is a reinvention of everything from scratch, no less. But new iPhone? Nope, that's the same stuff but with a bit more pixels and shaders inside.
So don't blame Wall Street Tony, they just reflect the real world facts. You failed with a prediction of $1000 stock, and you failed with a prediction of total iPhone 5 domination, and later you will understand all this. Probably Steve Jobs's death played a role here, without him who's going to give us another jolt of revolution? Cook is a good CEO but he's a "hone the product" kind of CEO, not the "invent new market where no one ever dared to go" kind of CEO.
When you will understand this, Tony, you will stop making stupid predictions about $1000 stock and all. Good luck with that ;)
RE: Android is winning (C) Tony
2/27/2013 9:47:57 PM
It's pretty rare that I agree with you Pirks, but on this I certainly do. Everyone and their mother, and the entire stock market and the entire industry can see that Apple is stagnating. Pretty much everyone but Tony and other die hard fans see that. He keeps saying "oh well they just had a profitable quarter so all is well". Ask RIM in 2010 how profitable quarters work for them. They need to start moving now, before they get lapped.
RE: Android is winning (C) Tony
2/28/2013 4:42:59 AM
Apple's innovation died on 10/5/2011. Unless they have discovered the secret to bringing back the dead or communicating with them beyond the grave, the run is up.
RE: Android is winning (C) Tony
2/28/2013 7:30:16 AM
I obviously get what you are saying, but even when he was alive, Apple hadnt released anything innovative since the original iPhone in 2007. Since then its been tiny improvements each round while the rest of the industry caught up and then surpassed them.
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