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The massive success of Google's Android OS on Samsung smartphones has the search giant fretting. Samsung smartphones run on Android and it has dominated the global market.
Other manufacturers like Sony and HTC use Android but Samsung still holds the most clout. It has led to Google fearing that the Korean-based company may have the upper hand when the two companies negotiate on a new deal.
"There is a threat from Samsung to Google that is real. Over time, Samsung will be able to leverage its market-share dominance to negotiate better terms from Google," investment bank Rutberg & Co. managing director Rajeev Chand said, according to the Wall Street Journal.
Samsung is in the position to demand a bigger cut of Google's mobile advertising revenues. Samsung has an estimated 215 million smartphones this year, which accounts for 30 percent of the total smartphone market. Last year, Samsung held 42 percent of smartphones using Android.
Not only is Samsung dominating the competition in the smartphone arena, its tablet market share is also increasing.
Of course, Google has noticed. It's been long rumored that the company is developing a Google smartphone.
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