4 ms·
This can't be about direct revenue. We all know that Android handset business is barely profitable. Even Samsung makes a fraction of what Apple does, and the re
by bmcusick 9y ago
This can't be about direct revenue. We all know that Android handset business is barely profitable. Even Samsung makes a fraction of what Apple does, and the rest are rounding errors.
I expect this is Google trying to prevent the Android market from becoming a Samsung monopsony. They're half the market, and everyone else is less than 5% (except Hauwei, which is 6%). Given the profits available, I bet half of these businesses are in danger of being shut down every year.
Another thought is that Apple has a huge advantage in that they make really low-level investments in hardware, especially the camera and security devices. Google would probably be willing to make those investments and license them to the other OEMs, but to really be good at it they'll need to be a hardware company themselves.
Lastly, and I think this is less likely, it's just my inner fanboy talking, but I hope Google makes really good phones and makes them Project Fi exclusives. If they can create an anchor phone that draws people to Google Fi, then Google has more leverage to negotiate lower prices from the wireless companies. Anything that take Verizon down a couple pegs is OK by me.
- bitmapbrother 9y ago>We all know that Android handset business is barely profitable. Even Samsung makes a fraction of what Apple does, and the rest are rounding errors. What a silly statement. Samsung's smartphone division reported profits of 3.6 Billion USD in their Q2 2017 financials. To claim that 3.6 Billion in 1 quarter is barely profitable is beyond ridiculous. As for the second largest smartphone OEM - Huawei: As we look at the overall revenue for Huawei during the first half of the year [2017], the company was able to bring in $42.04 billion, at an operating margin of 11%. https://www.xda-developers.com/huawei-releases-financial-report-for-h1-2017-sales-revenue-increases-36-2-yoy/ https://www.xda-developers.com/huawei-releases-financial-rep...