by Google is a real giant of the industry that offers the whole world not only its search engine or smartphone, sales of which are barely in the top ten, but also Android. Naturally, having such a powerful tool as the most popular operating system in the world, a company can dictate its terms to manufacturers. Approximately 88 smartphones out of 100 in the world run on this operating system, which makes the company almost a monopoly. I myself believe that there is nothing wrong with standardization, if done wisely. However, excessive influence on producers is no longer a blessing, but rather an evil.
Samsung needs to remain self-sufficient.
Samsung and Google deal
Some time ago, information was leaked on the Web that Samsung and Google were negotiating so that the Korean company would prefer Google services to the detriment of its own services. This should have meant dropping the default of Bixby’s own assistant, the built-in app store, and even the browser. Their place was to be taken by Goolge Assistant, Google Play and Google Chrome.
The company’s own built-in developments would of course remain, but they would not be the default applications. So far, the companies have not confirmed this information, but they also cannot find a direct refutation in the press. That being said, don’t underestimate the importance of what users will have access to first, especially considering how many Samsung phones are in the world and how big the company’s impact on the industry as a whole.
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In fairness, it should be noted that all Google services are already on Samsung smartphones. At the same time, users simply cannot pass them by. So, for example, a long press of the home screen button always brings up the Google Assistant. The store from which users download apps is almost always Google Play. And Google Chrome is such a convenient browser that most Android owners already use it.
This particular browser is the most popular among Android users.
What will happen to Bixby
However, if the deal goes through, Samsung may not only lose Bixby, which it has been promoting for so long, but even the ad placements that are offered to users while using branded services. To give you an idea of the scale of these changes, it was recently reported that Google is paying Apple billions of dollars to be the default search engine in Safari. This is the price of the issue.
Now imagine that the number of smartphones that Samsung and Apple ship annually around the world is roughly comparable. That is, this is a huge volume of traffic and users that will bring Google billions of dollars. It will also provide a huge database for service improvements.
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Google will benefit the most from a development perspective on Google Assistant. These are requests, the definition of speech and a behavioral model that is still to be developed and developed. So Google can not only make more money from sponsored links, but also gain even more foothold in the world of voice assistants. This will be very useful for conquering emerging markets, which will be the basis of the second billion Android users.
The number of Android devices has long passed over a billion, but there will be even more of them.
How much will Google pay Samsung
Naturally, with such prospects, Google will have to pay well for such an agreement, and Samsung is well aware of this. In addition to the fact that she needs to cover lost profits (loss of ads, expenses on Bixby, etc.), she still has the right to count on a solid sum of money and her market position allows it to do so.
Google understands this very well and, at least, will easily be ready to compensate for the costs of developing and implementing Bixby. The rest of the sum will already be the subject of negotiations. Simply by depriving (or holding it as much as possible) Samsung of its assistant, Google will simply “kill” the competitor, and then it is necessary to consider how profitable it is.
Another important point in the current environment is that against the backdrop of the pandemic, financial crisis and falling demand for top smartphones, Samsung may lose profit. Against this background, the money that Google can pay her will be very helpful. The question is what to do in this situation for the most loyal users who may be disappointed in the company’s actions, regarding it as surrender to Google.
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Samsung has always stood out in the world of Android smartphones. Only she among smartphones on Android has Google services applications in her store. In addition to her store, they are only on Google Play and the AppStore. With operating systems, a company can also seem very self-sufficient. She had her own versions of operating systems in her arsenal, such as Bada and Tizen. Do not forget about Samsung watches, which are in great demand due to the fact that the company does not follow Google’s lead and bends its line. If she succumbs to Google’s persuasion, she may lose that charm.
How Google works with phone manufacturers
Google has already shown that it has every reason to approach negotiations with its partners from a position of strength. It is she who owns the most popular services in the world, which have entwined literally everything, and people are not ready to refuse them. She is also the one who owns Android and can certify it. Therefore, it can dictate its own terms, but Samsung is also not made with a finger and can oppose something. That is why she should not give up too easily and she needs to fight for her position.
Google has enough power to push anyone.
At the same time, it cannot be denied that the same Bixby still needs some improvement, but it is developing and can still pose a threat to the Google Assistant. When he can take a normal place in the columns, he can become more popular and maybe even “shoot”.
Samsung has to make a decision in this situation, but the main thing is not to rush and not to sell too cheap. Users are now spoiled. They can say “sold out” and turn away from the company, so you need to understand on what terms the company is ready to meet Google halfway. On the other hand, Google will do it too if it wants to. Perhaps she will do it at any cost. Therefore, we are on the verge of another exciting clash of interests. Personally, I would not want Samsung to give up its positions. I’m not a fan of the brand, but let it retain its self-sufficient charm. What do you think about this?
