Motorola & The Others
by Da'Von B.
In the 1st Quarter of 2013 Samsung captured approximately 95% of all Android profits…once again that’s 95%, in terms of smartphone profits Apple has 57% of smartphone profits while Samsung has close to 43%, leaving every other smartphone vendor with very miniature to no profits at all on the basis of hardware. With regard to manufacturers of Android smartphones if Samsung is holding 95%, then everyone else from LG, Sony, Motorla, HTC, and the smaller outfits to scramble for the pieces of the 5%. Obviously being an Android smartphone vendor isn’t a substantially profitable or viable business.
All of the above information needed to be shared to put a few things in context and really discuss the new direction of the now Google owned Motorola. Make no mistake this is a Google outfit the goal is to sale more Motorola devices running Android than other Android vendor. If you’re selling hardware your goal is to make a profit, although many will suggest Google could sell Motorola hardware at a loss and make it up in mobile advertising, and if that’s the case maybe their 32GB Chromebook Pixel (internet based laptop) should be sold for a lot less than $1299, so you know, they could make up any loss through advertising in Chrome. So back to the original point, the goal essentially is to make a profit on hardware sales while also getting as many devices into the hands of customers as possible (customers = people, not customers in the sense of carriers), and Motorola over the past few quarters has reported nothing but loss after loss ideally you’d want to escape the sea of red and head into the black and eventually green.
The first sign that Google is steadily aiming at doing their best to court consumers can be seen in the advertisement above. Now we won’t get into how this looks so similar to the Apple campaign that’s been going on over the past month…we’ll get into that some other time. This advertisement says a lot to other Android OEM’s, Motorola was once a stand alone competitor with the rest of them, now they’re owned by the company that provides the OS many of their smartphones are built off of and is promoting heavily yet subtly to consumers in the US that “hey instead of buying that Galaxy S4 Pro or HTC One you should buy an Android phone you customize all assembled here in your country”. Google is fully aware that Samsung controlling such a majority of the profits in the Android OEM space isn’t remotely a positive thing.
This was bound to happen once the announcement was made that Google would purchase Motorola this was something that many in the media were suggesting initially that this wasn’t a good sign for other OEM’s until they somehow fell under Google’s PR spell that whenever Google says “jump” the press asks “how high?” so to speak, and basically believed Google when they said that a company they own won’t interfere with their relationships with other OEM’s that build Android products.
So now we’re here, with Motorola/Google announcing proudly that customers will be able to customize their new American manufactured Android phones while they go head to head with their competition in Samsung, HTC, Sony, and whoever else was bold enough to build Android smartphones. It will without a doubt be interesting to see how this all shapes up.