Feeds

The curse of Google?: Android licensees fail to cash in

Brand-slut buyers have no loyalty

Providing a secure and efficient Helpdesk

Google's Android is now in almost half the world's smartphones – but licensees are finding that quod eos nutrit eos destruit – or what nourishes them destroys them.

Figures from research company Canalys released this week certainly show booming growth in Android devices. Android is grabbing 48 per cent of the smartphone market worldwide, up 379 per cent from a year ago, in a market that is growing like Topsy.

But the success isn't translating to the bottom line – nor is it establishing much of a brand.

One observation caught my eye. Nokia's failure to update Symbian or supersede with something more attractive means its left a vacuum for more competitive products from rivals.

"Samsung has failed to fully capitalise on Nokia's weakened state around the world, as the Finnish company rides out a challenging transitional period," noted Canalys principal analyst, Chris Jones.

Android is very much the "generic" platform, but being generic, it brings no brand sizzle to the manufacturer. Expensive efforts to differentiate their Android handsets from others are turning out to be a waste of time. That was one of Symbian's founding principles, and it's coming true.

Samsung scores highly in user satisfaction surveys, but buyers remain promiscuous – once they have their smartphone, they feel they owe the manufacturer very little gratitude. There's no brand loyalty.

So, when the market stops growing, what will manufacturers do?

It's not as if they'll have built up huge cash warchests. Estimates vary on how much profit manufacturers are taking home: here's a recent one. It's still Apple, and decreasingly, RIM. There's a few pickings for HTC and Samsung. The others, Sony Ericsson, Motorola and LG, aren't seeing any positive revenue from Android.

Eventually something has to give, because being in business is about profit, not market share. The operators long to fork Android, because they don't want Google creaming off service revenue. I expect this to be a certainty – I only wonder how many forks there will be in this drawer. ®

Bootnote

Windows has raced to 1pc market share – showing how much work Nokia has to do.

Security for virtualized datacentres

More from The Register

next story
TEEN RAMPAGE: Kids in iPhone 6 'Will it bend' YouTube 'prank'
iPhones bent in Norwich? As if the place wasn't weird enough
Consumers agree to give up first-born child for free Wi-Fi – survey
This Herod network's ace – but crap reception in bullrushes
Crouching tiger, FAST ASLEEP dragon: Smugglers can't shift iPhone 6s
China's grey market reports 'sluggish' sales of Apple mobe
Sea-Me-We 5 construction starts
New sub cable to go live 2016
New EU digi-commish struggles with concepts of net neutrality
Oettinger all about the infrastructure – but not big on substance
PEAK IPV4? Global IPv6 traffic is growing, DDoS dying, says Akamai
First time the cache network has seen drop in use of 32-bit-wide IP addresses
EE coughs to BROKEN data usage metrics BLUNDER that short-changes customers
Carrier apologises for 'inflated' measurements cockup
Comcast: Help, help, FCC. Netflix and pals are EXTORTIONISTS
The others guys are being mean so therefore ... monopoly all good, yeah?
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.