Android dominates sales but Samsung profits
Smartphones running on Google's Android operating system had another dominant quarter, accounting for nearly 75 percent of all smartphone sales worldwide. But it's Samsung, not Google, that's seeing the biggest profits.
According to new research from Strategy Analytics, it's estimated that Android smartphone profits reached $5.3 billion in the first quarter of 2013. Of that profit, Samsung accounted for 95 percent, or $5.1 billion.
"We believe Samsung generates more revenue and profit from the Android platform than Google does," says Neil Mawston of Strategy Analytics. Which could make it even more difficult for others to catch up.
"Samsung has strong market power and it may use this position to influence the future direction of the Android ecosystem," Mawston said. "For example, Samsung could request first or exclusive updates of new software from Android before rival hardware vendors."
Overall, Strategy Analytics estimates that the entire smartphone industry's operating profits were $12.5 billion in Q1 2013, with Android capturing 43 percent of the industry's profits.
[via Bloomberg Businessweek]