On August 9, Google revealed to the world that ASUS will be responsible for the production of the new version of the tablet Nexus 10, previously manufactured by Samsung. The news failed to cause astonishment seen the popularity obtained by the Nexus 7, combining powerful hardware product with affordable price.
However, it should be noted that the decision of the Gigante searches should not be merely the history between the companies or the price offer made by ASUS. The change aims to not only renew the public image of the product and ensure the maintenance of the Android device market as we know it.
this article we explain why Google’s decision may serve as a way to balance the market and ensure the survival of an important division of the company. Check out our explanations and, after finishing the reading, do not forget to leave your opinion on the subject in our comments section.
Preserving competitiveness
During the first fiscal quarter of 2013, 95% of the profit of $ 5.3 billion obtained by the Android smartphone market was for Samsung’s coffers, according to data from Strategy Analitcs. Second is the LG, with a market share of 2.5%, while other manufacturers added divide the rest of the money.
While this is great for the South Korean manufacturer, this disparity between it and other companies is not something attractive to Google. This is because, in the view of the developer of the portable operating system, is not it interesting that a single company (other than her) has control over the market.
domain that Samsung has on the Android world, which so far is not rivaled by any company, gives her immense bargaining power. Dominating 50% of the traffic information passing over the platform, it is strange that so far the company has not taken the initiative to apply for a share of the profits that Google makes with commercials in between mobile.
If so, hardly a giant of searches will have no choice but to sell part of its profits to the South Korean company. After all, she does it or see it or without a representative weight able to keep alive the popularity of its mobile platform – something that not even all the other manufacturers added easily be able to make at this time.
“Samsung has a strong market power and can use their position to influence the future direction of the Android ecosystem,” said analyst Neil Mawston. “For example, it can demand to receive exclusive updates or request that new versions of Android are released for it before other hardware vendors to receive.”
threatening signs
Although not acted in direct relation to snatch the profit that Google has with advertising, Samsung is well aware of the power you have at the moment. Proof of this is the fact that the company is increasingly investing in the development of a proprietary sales application, known as “Samsung Recommends”.
Although this service still works discreetly, it is not impossible to imagine a future in which it rivals Google Play. Even though few applications are currently available in the online store, the influence (and money power) the company can serve as an incentive for more developers decide to offer their software there.
Another point that makes clear the fact that Samsung wants to create an image of Android disassociated itself “pure” is the great investment it gives the functions and proprietary interfaces. The biggest example is the Galaxy S4, which has many unique features and programs that the user experience provided by the device shown quite different from that provided by the basic version of the operating system.
Given this scenario, it is normal that Google wants to distance himself from the South Korean manufacturer, prioritizing companies which can provide a more competitive market. Besides having made the partnership with ASUS, the company plans to invest $ 500 million in promoting the Moto X in order to ensure the success of smartphone among consumers – something that, if it works, can help lessen the influence of Samsung on this market.
Samsung: looking for an individual path
By leaving much of the Android market in the hands of Samsung, Google is likely to see a slice of their consumer market disappear from one day to another. This is because, compared to the general public, the name “Galaxy S” itself carries much more weight than the actual operating system that came with the devices belonging to this line.
This “coup” can happen in several ways, with the most evident by the name “Tizen”. Developed in partnership with Intel, the new mobile platform based on Linux should make his debut in a matter of a short time on some devices the South Korean company.
Although the company has failed to draw the public’s attention with the Bada OS, the focus on Tizen shows that she is trying to abandon the restraints imposed by Google. After all, to control the operating system that came with their devices, Samsung also has a chance to profit from all transactions made by their users without having to give any share of their earnings to other organizations.
If the company’s bet on its new platform not yield the expected results, it may also decide to follow a path similar to Amazon. Although still use Android as a base for its products, the company of Jeff Bezos changed the software to the point it becomes a completely different product and has an ecosystem of applications that itself does not depend on Google Play to survive.
If Samsung decides to follow suit, it could mean a big problem for Google, which would see their plans to dominate the mobile market go down. Not only did she lose much of its consumers, as would be forced to deal with an opponent with a huge commercial power.
The merits ofASUS
Despite the exaggerated power that Samsung has on the Android market is one of the main reasons she is no longer responsible for Nexus 10, you can not leave aside the merits of ASUS. As previously mentioned, the company managed to do a great job with the Nexus 7 device that not only has a relatively powerful hardware, but also presents a very attractive selling price.
If the company can again combine these two elements, the new version of the tablet which is under his responsibility has everything to be a success. When one takes into consideration that the company recently decided to abandon the development of products with the Windows RT, that means she now has energy left over to spend on new product development.
Known mostly for their motherboards and components for computers, ASUS has diversified its activities in recent years. In addition to manufacturing products for other companies, the organization has been focusing increasingly on gadgets they carry their own brand, in a list that included devices like the Nexus 7 and FonePad.
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