Samsung Grabs 95 Percent of Global Android Smartphone Profits
Overall Android smartphone profits reached $5.3 billion in total during the first quarter of 2013, according to Strategy Analytics.Consumer electronics giant and smartphone handset manufacturer Samsung has emerged in recent years as a major rival to Apple and its iPhone, churning out both high-end and lower-end handsets running Google’s Android operating system. A report from IT research firm Strategy Analytics found Samsung dominated the Android smartphone market in the first quarter of the year, capturing an impressive 95 percent share of all Android smartphone profits. Overall Android smartphone profits reached $5.3 billion in total during the first quarter of 2013. "An efficient supply chain, sleek products and crisp marketing have been among the main drivers of Samsung’s impressive profitability," Woody Oh, a senior analyst at Strategy Analytics, said in a statement. "LG followed in second place and took 3 percent global profit share. LG delivered a small profit during the quarter, but it currently lacks the volume scale needed to match Samsung’s outsized profits." LG placed an almost laughably distant second place with 2.5 percent profit share, while the combination of other vendors hawking Android handsets grabbed 2.7 percent of the profit share. The report noted the data includes Android smartphone hardware profit only, and it does not include any other operating systems and does not include tablets or any other devices.
"Samsung is, for now, the undisputed king of the global Android smartphone industry. We believe Samsung generates more revenue and profit from the Android platform than Google does," Neil Mawston, executive director at Strategy Analytics, said in a statement. "Samsung has strong market power and it may use this position to influence the future direction of the Android ecosystem. For example, Samsung could request first or exclusive updates of new software from Android before rival hardware vendors."