Samsung Made Up 95% of All Android Profits in Q1 2013
New earnings estimates indicate that products made by Samsung accounted for 95% of all of the profits that Google’s Android operating system generated this past quarter.
According to statistics compiled by Strategy Analytics in a statement made to PC Magazine, while the profit that companies who use Android on their smartphones increased to a high of $5.3 billion dollars, shipments of Samsung’s devices like the Galaxy S3 pushed that company’s share of the overall profit pie to $5.1 billion.
In short, other companies that use Android on their devices like LG and HTC only took home a combined $200 million. LG, maker of the Nexus 4, ranked a distant number 2 with 2.5 percent of all Android profits.
According to Strategy Analytics’ senior analyst Woody Oh, Samsung’s dominance in respect to profitably isn’t surprising considering the company’s scale, saying “an efficient supply chain, sleek products and crisp marketing have been among the main drivers of Samsung’s impressive profitability.”
It may be those last two that are really sealing the deal for Samsung. Since the introduction of the Samsung Galaxy S3, the company has been able to repeatedly create marketing that strikes a chord with users who aren’t completely sold on Apple’s iPhone. Last week the company unveiled three graduation themed advertisements, one of which went directly for Apple’s jugular.
In that particular advertisement, a couple is seen holding up their iPhones while admiring the features of a recent college graduate’s Galaxy S4. The husband then holds up his iPhone and asks, “So what you are saying is that there are smartphones that are smarter than other smartphones?”
Read: Samsung Galaxy S4 Review
Having established that it ships the latest hardware, the company has now shifted from establishing it’s dominance in quality smartphone hardware to software. Its Samsung Galaxy S4 includes an impressive list of features that rely heavily on software.
These include Air Gesture, which allows users to control their phone without having to touch it and a scrolling mechanism that tracks the eye of the user as their watching video on the device and pauses it the moment they look away.