95% of Total Android Smartphone Profit Goes to Samsung

SamsungIt is hardly a secret that Samsung is absolutely killing it with its Android smartphones. However, exactly how dominant the South Korean conglomerate is might still come as a surprise to most. Strategy Analytics believes that the Android smartphone industry generated a profit of $5.3 billion during Q1 2013, out of which Samsung’s share was $5.1 billion.

Samsung managed to collect an astonishing 95% of the total Android smartphone profit during the first quarter of this year. And, this is before the Galaxy SIV was released. On the other hand, Android smartphones as a whole managed to accumulate 43% of the total profit in the smartphone segment. Besides showing Samsung’s domination in the smartphone segment, these statistics also paint a sorry picture about its rivals. Android smartphones might be a big hit, but Samsung appears to be the only one who is raking in the dough. In fact, the only other manufacturer to even make an appearance in Strategy Analytics’ list is LG with a profit share of 2.5%. The past few months have been good for LG thanks to strong performers like the Optimus G and Nexus 4. Receiving Google’s blessings to launch the flagship model for Jellybean (Android 4.2) must have also helped Samsung’s Korean rival. The remaining OEMs contribute a combined operating profit of only $0.1 billion.

While Samsung has undoubtedly played a crucial role in the success of the Android ecosystem, its dominance is sure to make Google uncomfortable. Strategy Analytics believes that Samsung generates more revenue and profit from the Android platform than Google does. With its massive market share, Samsung is in a position to wield considerable influence over the Android ecosystem. Worse still, there is the possibility that one day Samsung might become confident enough in its software prowess to ditch Google and Google apps. In fact, rumors suggest that Samsung might test the water with Tizen as soon as end of this year.

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