Samsung grabs 95 percent of Android smartphone profits

The Korean handset maker earned $5.1 billion of the $5.3 billion in global profits last quarter, says research firm Strategy Analytics.

Samsung's flagship Galaxy S4.
Samsung's flagship Galaxy S4. Sarah Tew/CNET

Samsung took home almost all of the profits generated in the Android smartphone world last quarter, according to a report today from Strategy Analytics.

For the first quarter, global Android smartphone profits totaled $5.3 billion. Samsung captured a hefty 95 percent, or $5.1 billion, of that amount. Strategy Analytics senior analyst Woody Oh pinned Samsung's success on an "efficient supply chain, sleek products, and crisp marketing."

Strategy Analytics

Second place LG Electronics snagged 2.5 percent of Android's global earnings and is far behind Samsung in the volume of its smartphone devices. Samsung could even use its dominance to gain an edge over LG and other rival Android vendors.

"We believe Samsung generates more revenue and profit from the Android platform than Google does," Strategy Analytics Executive Director Neil Mawston said in a statement. "Samsung has strong market power, and it may use this position to influence the future direction of the Android ecosystem. For example, Samsung could request first or exclusive updates of new software from Android before rival hardware vendors."

Looking at the entire smartphone industry last quarter, the Android platform carved out a 43 percent slice of $12.5 billion in operating profits, according to the report.

About the author

Journalist, software trainer, and Web developer Lance Whitney writes columns and reviews for CNET, Computer Shopper, Microsoft TechNet, and other technology sites. His first book, "Windows 8 Five Minutes at a Time," was published by Wiley & Sons in November 2012.

 

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