Samsung Gobbles 95% of Global Android Smartphone Profits in Q1
May 16, 2013 9:38 AM
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Samsung dominates the Android market
Samsung is destroying all other competitors in the Android smartphone market with the popularity of its devices. A new report is in from Strategy Analytics that shows during Q1 of 2013, Samsung captured 95% of global Android smartphone profits.
Strategy Analytics reports that total smartphone profits during the quarter reached $5.3 billion according to estimates. The research firm also says that the Android platform accounted for 43% of the entire smartphone industry's operating profits.
Samsung is estimated to have generated $5.1 billion in operating profit around the globe during Q1. Strategy Analytics says that Samsung owes the massive share of profits it grabbed to its efficient supply chain, sleek products, and effective marketing.
LG was in second place with a mere 3% of the global profit share. The research firm estimates that LG generated operating profits during Q1 of $0.1 billion leaving all other Android device makers to fight over the $0.1 billion that was left.
Strategy Analytics believes that Samsung is such a heavyweight in the Android smartphone market that it could use its power to request first or exclusive updates for Android software before rival manufacturers.
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RE: Not to mention...
5/18/2013 8:02:52 PM
It would actually be bad for Google if Samsung becomes the only profitable Android manufacturer. It would eventually mean the death of competition among Android makers, which is one of the main driving factors behind Android's success and rapid hardware iteration. That's one reason Google snapped up Motorola, as a sort of hedge/safeguard against this sort of thing. They haven't really had to play their hand though, yet, but they could if Samsung pushed the other independent makers to the brink.
Anyway, this does validate Nokia's risky gamble to some extent. Nokia is putting some nice models in almost all price ranges and markets (especially for non-subsidized markets), and they've finally got a 92x device hitting both T-Mo and VZW. The Android market right now is pretty crowded.
For Android I like Samsung's hardware the best oveall, I've owned Samsung devices in the past. However, among Android phones, I like the HTC One the best right now. I got to play around with a friend's for a while. But I still am quite happy with my Lumia 822. Too bad Verizon didn't pick up the Samsung Ativ S.
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