Samsung and Google Inc (GOOG) Provide Entertainment For Apple Inc. (AAPL)

Apple Inc. (NASDAQ:AAPL) is receiving quite the show from competition in the Android market. To them, it is likely better than a show in Vegas. Google Inc (NASDAQ:GOOG) owns Android, but they aren’t dominating the market like Samsung is. Let’s take a look at how this situation could play out, and what it could mean for these companies moving forward.

The situation

Google Inc (NASDAQ:GOOG) is planning on spending as much as $500 million to help its Motorola subsidiary make a successful phone. Motorola currently holds approximately 1% of the market share, and is developing a new phone coined “Moto X.” If half a billion dollars doesn’t motivate Motorola, what will? The issue isn’t expanding Android, it already owns the majority of global market share. The issue is whether Google Inc (NASDAQ:GOOG) can avoid being cut out of the Android ecosystem.

If Samsung follows what Amazon did with its Kindle Fire on the smart phone front, would Google hold any relevance? Samsung is dominating the Android market place by capturing 95% of its profits. In the first quarter, Samsung sold 82.2 million phones, tablets, and laptops. Samsung is the dominant force behind Android at the moment, but could be the only force given some time.

What happens?

Well, a lot. Probably the most obvious result would be Google Inc (NASDAQ:GOOG) losing out on Google Play media and apps revenue. However, the biggest would probably come by Google Inc (NASDAQ:GOOG) losing the relationships its built with mobile users.

This would give Apple Inc. (NASDAQ:AAPL) a chance to further their market share with the highly anticipated cheap iPhone model (presumably the iPhone 5S). We shouldn’t have to wait too long before seeing how both companies respond. Most of this would be dependent upon Motorola’s MotoX device, and how users respond to it.

The debate will continue, but a lot of users have a different attitude. They claim Samsung’s Galaxy SIII and Galaxy SIV are the best phones they have ever had. The reason? Everything on it is from Google Inc (NASDAQ:GOOG). The Google Apps and hardware are why many people buy Samsung’s devices. Surely, this won’t cause both companies to abandon each other.

Revenues

Everyone seems to be discussing how much revenue these companies are deriving from phones.

Apple Inc. (NASDAQ:AAPL) clearly wins the competition, as it generated nearly $83 billion off of the iPhone in 2012. If it can release a cheaper model of the iPhone this year, its markets will expand and solve what is believed to be one of the companies greatest weakness. A lot of expectations have been set for Apple Inc. (NASDAQ:AAPL), but not even they know if they can meet them.