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Are Mobile Apps & Samsung SmartPhones a Threat to Google ?

May 29th, 2013

Samsung Threat to Google's AndroidWhile Google’s mobile revenue data suggest mobile search activity is robust, it is possible that consumers increasingly go directly to their favorite web sites via mobile apps to look for information (such as restaurant availability with OpenTable or to purchase retail products with Amazon app), reducing Google’s opportunity for Monetization. Apps usage is 6x Web browsing usage on mobile devices, which is a big reason for Google to Worry as it relies more on Advertising Dollars.

Samsung a Big Threat to Google – With 30% of global market share and 46% estimated Android share in 2012, Samsung is a dominant leader in Android devices. Samsung could use its strong position to negotiate more favorable mobile advertising arrangements with Google, demanding higher fees for App installs and a higher search TAC rate. To wade off Samsung’s threat, Google has quietly built the scale for Android SmartPhones using Motorola Mobility, which it acquired a year ago.

According to Forbes, Samsung aspires to be a content and ad company and has ambitions to own its own OS, initially with Bada but now in partnership with Intel on the Linux-based, open source Tizen project. Recently, Samsung launched its own Tizen OS phone, although the press suggested that Tizen is more of a fallback plan than a full-blown Android alternative. While we aren’t expecting Samsung to disrupt Android, the threat of a change.

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