There are a lot of companies selling small-screen computers based on Android: Acer, LG, HTC, Samsung, Motorola, even Dell and Lenovo. And only one of them – Samsung – has ever made a single penny in profit on the platform. While every other publicly-traded handset maker has watched millions (or in the case of Motorola, billions) of dollars bleed away from their Android offerings, Samsung has managed to turn a tidy profit on the devices – over 5 billion dollars (almost 6 trillion won) in 2012. The question is, how? How does Samsung make a tidy little sum on a product that has everyone else hemorrhaging cash?
One word: Marketing.
Yes, the other companies all do marketing of their handsets. But Samsung has a double whammy that no one else is either able or willing to copy. Part one is their incredibly focused message – everything they do is aimed at consolidating second place. Part two, and the much bigger part of this equation, is how much they spend. Last year, 12 billion dollars to promote, advertise, and market their Android handsets.
That’s right, 12 billion. With a “b”. That’s more than Apple, Microsoft, and Coca-Cola spend on advertising every single product their companies make.
Want to make money selling Android? You better start with really, really deep pockets.