Google Inc (NASDAQ:GOOG) has partnered with numerous companies over the years, however there are two that stick out. Who are they, what areas have been effected, and what level of success have they had?
Although the new Kindle Fire HD will not start shipping until June 13, Samsung Electronics Co., Ltd. (KRX:005930) is already making splashes with its new Galaxy S4, an Android device. Google Inc (NASDAQ:GOOG) makes the Android operating system which many companies use, but Samsung is the largest of these. In fact, with over 10 million units sold in the first month, the Galaxy S4 set a new company record for Samsung. It took the Galaxy S3 fifty days to reach this mark, and the Galaxy S2 five months. Samsung is getting bigger, faster. Over the period of the month, Samsung Electronics Co., Ltd. (KRX:005930) has sold four units every second.
Despite its recent success, Samsung also announced releasing colors including Blue Arctic, Red Aurora, Purple Mirage, and Brown Autumn — something Apple Inc. (NASDAQ:AAPL) is yet to do with its iPhone 5 which has been out for nearly nine months.
No, I’m not including Apple Inc. (NASDAQ:AAPL) as one of Google Inc (NASDAQ:GOOG)’s primary partners, but to give a comparison of how well Samsung is doing, it may be beneficial. Samsung sold 4 million units in its opening weekend compared to Apple Inc. (NASDAQ:AAPL) 5 million iPhone 5s. The difference is what they consider “sales”. Apple’s numbers don’t include shipments, Samsung Electronics Co., Ltd. (KRX:005930)’s generally do. However, the lingo that Samsung used when announcing its 10 million sold units implied that they hadn’t actually shipped that many either. These sales may not have beaten Apple’s record, but it smashed its own personal record.
Apple’s critics are blaming the company for not developing new products. Yes, there are plenty of rumors including an iPen, Apple TV, or a potential iWatch. If Apple Inc. (NASDAQ:AAPL) actually releases one of these items this year, some of their scrutiny would likely decrease. However, the longer the company goes without creating new devices, there will be skeptics that question their ability to innovate. If this happens, the Apple bandwagon may be larger than ever.
Who knows, their stock could actually gain momentum and please shareholders again. They have announced plans to release $100 billion to shareholders by 2015. This is only about two-third of their current available cash, and this figure will surely grow over the next year and a half.
Google Inc (NASDAQ:GOOG)’s second large partner is Amazon.com, Inc. (NASDAQ:AMZN). For the first time ever, the Amazon Appstore for Android is now available in an additional 200 countries globally. Yes, Amazon’s Kindle Fire HD release coincides with the Appstore’s expansion. This move should boost revenues/sales for both Amazon.com, Inc. (NASDAQ:AMZN) and Android maker
Google Inc (NASDAQ:GOOG)
Both of Amazon’s 7″ and 8.9″ Kindle Fire HD units are currently available for pre-order. The 7″ unit is priced at $214 while the larger version is $70 more. These devices will offer 22 million Android apps, games, movies, etc… Although Samsung Electronics Co., Ltd. (KRX:005930) receives 95% of profits in the Android device market, Google Inc (NASDAQ:GOOG) does receive a boost to its ad revenue. Amazon.com, Inc. (NASDAQ:AMZN) depends on affordable hardware to drive its digital content revenue, which is different from most other companies.
The release of Amazon’s new Kindle should noticeably increase revenue. Previously, these devices were only available in the U.S., the U.K., Germany, France, Italy, Spain, and Japan. Now, it will be available in 170 new international markets. Both Google Inc (NASDAQ:GOOG) and Amazon should benefit from this drastic increase in geographic sales.
The Foolish bottom line
Often times, companies partner with each other and it ends up being a nightmare. Although the majority of Google’s revenue is generated through ads, these partnerships definitely compliment the company in beneficial ways. Google may now be the “benchmark” for those looking to partner up with other companies.
The article Google’s Partnerships Are Beneficial originally appeared on Fool.com is written by Tyler Wofford.
Tyler Wofford has no position in any stocks mentioned. The Motley Fool recommends Amazon.com, Apple, and Google. The Motley Fool owns shares of Amazon.com, Apple, and Google. Tyler is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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