Google is worried that it has created a monster

POSTED BY on Feb 26 under Mobile & Web News

The constant threat that Apple is in the mobile marketplace, Google now has to worry even about its most successful partner – Samsung.

Google is fearing that Samsung might use its massive power to demand bigger shares of Google’s ad profits.

Google provides the Android software for free but it shares search profits with handset and operator partners.

According to Google’s deals, Samsung is receiving around 10% of search profits.

It is not hard to imagine that Samsung, which currently holds around 40% of Android marketplace, might demand a bigger share from the search giant.

Samsung has shipped almost 40% of all smartphones (Apple accounted 25%) and as their sales increase – bigger share for Samsung might cost Google even more.

However their partnership will likely remain complicated, as Samsung is selling more devices, Google also makes more in search profits.

On the other hand Samsung has a difficult relationship with Apple, since the company makes the chips that are powering the iPad and the iPhone while directly competing with their tablets and smartphones.

flickr-samsung

Source: venturebeat.com

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