This is a topic we have discussed a few times, mainly when we are speedily going back and forth on the Droid Life Show, speculating whether or not Google cares that Samsung’s success could spell trouble for them down the road. Apparently, WSJ has had a chat with some folks close to the matter, and Google is legitimately concerned over Samsung’s pure Android device marketshare domination.
Over the last year, Samsung has basically put on a clinic with how to make a smartphone go viral. In numerical speak, Samsung shipped almost 200 million more Android devices than the next leading Android OEM. Thanks to massive marketing campaigns throughout TV, print, and other forms of advertisements, the Galaxy brand is now a household name. So, what makes this a bad thing for Google? Why would Google be worried that one OEM is making them a ton of ad revenue more so than any other?
According to sources inside Google, the search giant is worried that if it allows Samsung to grow too big, the Korean manufacturer will be able to demand more online advertising revenue that they are making for Google. As of now, that number sits around 10%, but if Samsung continues to grow that number could rise. Worst case scenario and Google can’t give them a reasonable offer, Samsung could easily pack up shop and start working on their own version of Android, much like what Amazon has with the Kindle tablets. Android makes Google money by using their services (YouTube, Google search, Google Play, etc.) and if Samsung took the Amazon route, Google would be losing a ton of revenue if they halted using those specific applications on their devices.
This is where the purchase of Motorola comes in. Google, according to the same sources, will work extremely close with Motorola to keep Samsung from getting out of hand. By creating a device, in reference to the upcoming X Phone, Google will look to steal a bit of Samsung’s thunder to make the Android OEM field a bit more fair and level for all players.
If Moto and Google can seriously deliver a home run with the new device, that would certainly be a fresh air for the eco-system.