Forget any celebrity break-up that may occur this yet year and possibly beyond. A new break-up is possibly about to take the cake.
As the Wall Street Journal reports, Google and Samsung seem to be having a little trouble getting along.
It seems as though Google is growing increasingly worried that Samsung phones play a huge role in Googles business. Why? That’s because 40% of Samsung’s run on Android, Googles OS.
But why would this be a problem? Well, it is my understanding that Google executives are worried about playing any hands towards Samsung. They are almost in a lose-lose situation should they ever get in a fight.
Look at it this way: if Google has a problem with Samsung, they have to be cautious as to how they approach that problem because Samsung can easily call it quits and there goes 40%.
On the other hand, however, if Google doesn’t show any backbone at all, it gives Samsung an opportunity to walk all over them. See? Lose-lose.
That last scenario seems more realistic, as Google execs are worried Samsung might be asking for more than its10% that it already gets from Googles online advertising revenue, as Samsung has signaled it wants more.
To make matters worse, the earlier acquisition of Motorola Mobility adds a little tension to the mix. Google promised to play nice with all companies involved with its Android platform when the acquisition occurred, however Google might be changing things up if Samsung gets a little money hungry. This is really the last thing Android needs as it aims to compete with the powerhouse of Apple iOS.
What do you guys think? Is Google over reacting? Will Samsung ask for more than its 10%? Is Tim Cook sitting back with a bowl of popcorn watching all of this unfold?