Google CFO Says That Relationship With Samsung Is Great

Posted Mar 4, 2013

Late last month, The Wall Street Journal wrote an article about how Google is concerned about Samsung’s dominance.  There was a report that Google conspired with other manufacturers like Hewlett Packard and HTC to stay competitive against Samsung.  However Google CFO Patrick Pichette threw cold water on that hot rumor.

“We have a terrific relationship with Samsung. They’ve been very successful with the Android platform. They benefited just like the rest of the ecosystem. We welcome all of the partners that we have on our Android platform and continue to innovate. And what our objective and our aim is to make sure that as many partners in the ecosystem continue to benefit from these open source platforms,” said Pichette when speaking at a Morgan Stanley investment conference.  “I just think journalists love big headlines that sell newspapers,” said Pichette.

The earlier report indicated that Google was worried that Samsung may demand a new advertising-revenue share from Google.  Samsung sold over 215 million handsets and they are receiving around 10% in advertising-revenue from Google.  Since Samsung sold so many Android devices and is contributing to Google receiving a lot more traffic, there could be a reason for them to demand a higher amount.

Although Pichette suggests that their relationship with Samsung is great, he has other choice words for the line of phones that Motorola has prepared.  ?Motorola has a pipeline of products that were fine but not really to the standards that Google would say is wow ? innovative, transformative,? said Pichette. ?We?ve inherited 18 months of timeline that we actually have to drain right now.?