While Google might be happy with the mobile ad revenue Samsung brings in shipping roughly 40 percent of the devices running Android, The Wall Street Journal said Google execs worry behind closed doors that Samsung could use its dominance to renegotiate its cut of revenue from mobile ads and search:
Google executives worry that Samsung has become so big—the South Korean company sells about 40% of the gadgets that use Google’s Android software—that it could flex its muscle to renegotiate their arrangement and eat into Google’s lucrative mobile-ad business, people familiar with the matter said.
Citing its usual “people familiar with the matter,” WSJ claimed executives at Google are betting on companies like HTC and HP to release compelling Android devices that compete with Samsung. According to the report, Android chief Andy Rubin discussed the situation at a recent event for Google executives. He described Motorola as “a kind of insurance policy against a manufacturer such as Samsung gaining too much power over Android.” Read more