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Samsung takes 95 percent of Android smartphone profits in Q1

16 May 2013
Samsung Galaxy S4 apps

Samsung took 95 percent of global smartphone profits in the first quarter of 2013, according to a study by Strategy Analytics.

Strategy Analytics reported that Samsung made about $5bn in smartphone profits for the quarter. According to the study, LG came in second for profits for Q1. Strategy Analytics says that Samsung's success was based on a number of factors.

Senior analyst at Strategy Analytics Woody Oh said: "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 three 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."

LG failed to earn more than $1bn in global profits for the quarter. The company made up 2.5 percent of total Android profits in Q1 2013. While the rest of the industry scored the rest in total profits. The release of its latest flagship phone, the Galaxy S4, means Samsung is likely to dominate the market for the rest of 2013 too. 

Much has been said about Samsung's growing dominance in the Android marketplace. Executive director at Strategy Analytics, Neil Mawston, said that in the future Samsung could use its power in the market to request that Google developers launch exclusive apps for their devices.

"Samsung is, for now, the undisputed king of the global Android smartphone industry. We believe Samsung generates more revenue and profit from the Android platform than Google does," said Mawston.

"Samsung has strong market power and it may use this position to influence the future direction of the Android ecosystem. For example, Samsung could request first or exclusive updates of new software from Android before rival hardware vendors."

While Samsung's growth may threaten Google's OS in the future, the alliance doesn't seem to be ending anytime soon. During Google's I/O conference this year, the search giant announced that it would begin selling a stock version of the Galaxy S4 in its Play Store.

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James Dohnert
About

James is a freelance writer and editor. In addition to ClickZ, his work has appeared in publications like V3, The Commonwealth Club, CachedTech.com, and Shonen Jump magazine. He studied Journalism at Weber State University.

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