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Samsung Is No Threat to Google

Stocks in this article: GOOG AAPL SNE MSFT HPQ AMZN BBRY

5. Newer Chinese competitors including ZTE and Huawei are making inroads beyond their home market. They are already beating many previously top Android competitors in volume shipments.

6. Google itself may push Nexus harder, with more partners and with its own hardware -- even aside from Motorola. Just look at the Pixel Chromebook for evidence of this kind of approach.

For all of these reasons combined, I believe that Samsung's share inside the Android world has either already peaked, or will soon be peaking. Keep in mind that Android as a whole has been growing rapidly, and likely will continue to grow rapidly -- both in terms of absolute numbers as well as market share, breaking through the already impressive 70% barrier.

This does not mean that Samsung will do poorly or that it is somehow a bad company. To the contrary. Samsung is great, has done great and will most likely be doing great in the future. It is just not a threat to Google, any more than HP was a threat to Microsoft Windows.

Nobody should take these comments as anything remotely negative about Samsung. To the contrary, I'm Samsung's biggest fan. In my opinion, Samsung has made the best smartphone of our time with the Galaxy Nexus, and it has made some of the best Chrome OS devices -- for which I have given the highest grades in reviews over the last two years.

Google and Samsung are friends. They are likely to stay friends. Both make superb, complementary products, and they will also have some overlapping products and strategies.

Mostly, though, Google is not losing sleep over how well Samsung has done in terms of selling Android smartphones and tablets. Google holds all the valuable software and service cards, and this will likely remain the case for a long time.

It's Apple that should be worried about Samsung, not Google.



At the time of publication the author had long positions in GOOG and AAPL and a short position in MSFT.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

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