Google Android: Google Android Relying Heavily on This Smartphone Giant

Google Android: Although the Google Inc (NASDAQ:GOOG) Android operating system does not always receive as much attention as the Apple Inc. (NASDAQ:AAPL) iOS, it is safe to say that the company is doing big things.

Unlike Apple, which relies on its own iPhone to push its operating system, Android is used by a variety of manufacturers.

As you know, Samsung is riding high right now. The company has seen quite a bit of growth as of late, and is definitely competing head to head with Cupertino.

Of course, a large portion of the company’s success is based on the fact that its smartphones run on the Google Inc (NASDAQ:GOOG) Android operating system.

According to a recent report by Strategy Analytics, “global Android smartphone profits reached US$5 billion in total during the first quarter of 2013. Samsung dominated and captured an impressive 95 percent share of all Android smartphone profits.”

Before we talk any further about Samsung, let’s take a closer look at the first part of that quote.

During the first quarter of 2013, Android smartphone profits reached $5 billion. That is a huge number for the company. While it is happy to be working with a variety of manufacturers, you have to believe that its relationship with Samsung is most important.

Woody Oh, Senior Analyst at Strategy Analytics, added the following:

“We estimate Samsung’s Android smartphone shipments generated US$5.1 billion of operating profit worldwide in Q1 2013. Samsung captured a huge 95 percent share of all Android smartphone industry profits. An efficient supply chain, sleek products and crisp marketing have been among the main drivers of Samsung’s impressive profitability. LG followed in second place and took 3 percent global profit share. LG delivered a small profit during the quarter, but it currently lacks the volume scale needed to match Samsung’s outsized profits.”

In addition to Samsung, Google Inc (NASDAQ:GOOG) Android operating system also powers LG smartphone as well as many others.

That being said, the profit share among LG is 2.5 percent. The rest of the smartphone manufactures make up 2.7 percent profit share.

One last point that you may find interesting comes from Neil Mawston, Executive Director at Strategy Analytics:

“We believe Samsung generates more revenue and profit from the Android platform than Google does.”

How crazy is that?

If you want to learn more about the growth of the Google Inc (NASDAQ:GOOG) Android operating system, check out the graph, courtesy of Strategy Analytics, on the next page: