Google, Samsung, LG
A research report unveiled that the symbiotic relationship between Google and the domestic companies such as Samsung and LG may come to an abrupt end. It added that Google may try to dominate the device production and other related industries using its mobile operating system (OS) market controllability.
On August 20, researcher Seo Ki-man of LG Economic Research Institute said, “The current mobile domination of Android is only a preview of what Google can do,” and warned, “Korean companies can no longer count on the controlling business (Google) to be good.”
Google Android’s share in the current mobile OS market is overwhelming. Eight out of 10 smartphone devices shipped from the first half of this year are Android. It has overcome its competitor Apple and become the leading smartphone platform.
However, Seo said, “The fact that Android is dominating the platform means that Google will soon be able to have great influence and control over the entire mobile business,” and criticized, “It is risky for Korean companies to settle for the current success in the market.”
For example, PC models and Internet providers did not make a big difference in a user’s experience in the PC market. However, in the mobile industry, smartphone models depend largely on which OS is being used. Therefore, the supply and sales of services and content also depends on the OS. So devices, services, and content have all become a part of the Android business. This will end up allowing Google to change market trends for related businesses, as the past market dominator Microsoft did to Netscape by combining Windows and Internet Explorer.
He mentioned that the Korean device production companies are at risk too.
Although Samsung and LG smartphones played a huge role in putting Android where it is now, Google can always change its mind and try to weaken business profits from device production.
Seo said, “Now is the time to get ready for unexpected situations,” and added, “Domestic companies must come up with ways to increase device manufacturing capabilities while enforcing the production platform through creating a hardware that is far better in quality than now.”