Asymco: In-depth analysis: The interest relationship between Google and Samsung [Graphic]

In recent years, Samsung's achievements in mobile phone sales are obvious to all. The company has long replaced Nokia's position as the number one in sales performance.

Although Samsung has only recently entered the smartphone industry, the company's smartphones have now become a first-tier smartphone brand, with sales of more than 50 million units per quarter. The profits from smartphone sales account for nearly 40% of the total profits of all industries.

Adjusting the business direction is the key to Samsung's success, providing a variety of smart phone products for consumers to choose from. In the first quarter of 2010, smart phones accounted for only 3% of the mobile phones produced by Samsung. Please see the figure below, which is the market share of Samsung's smart phone sales in the most recent quarter:

So the average selling price of Samsung phones doubled, from $115 to $234.

Of course, profits also doubled: from 12% to 21%.

Samsung's overall profits have risen from $64 million per quarter to more than $100 million per quarter, making huge profits. Samsung has not only replaced Nokia, which had been the leader for 14 years, but also made more profits than Nokia could ever hope to achieve. Currently, Samsung's profits have surpassed Google's. Samsung's success is due to the Android system. Samsung's rise is attributed to its timely introduction of Android into its branded phones. Samsung's breakthrough Samsung Galaxy series of phones is part of the Galaxy S series launched in 2010.

At the same time, the curve in the above figure shows that the launch of Samsung Galaxy series of mobile phones has affected Google's profit. If the trend of the graph does not represent anything, then the Android system has created a very interesting industry. Now there are a series of questions. Will Samsung's profits continue to grow? Why did other Android-based mobile phone companies fail to succeed? Why did Google not succeed with Android? Why did Motorola fail to succeed? Samsung has made such huge profits from Google's mobile phone operating system. If Google restricts the scope of Samsung's mobile phone application platform for its own benefit, what will happen to Samsung? I believe that as time goes by, the answer will gradually surface. Let us wait and see.