Making enemies out of friends is never good business. Search giant Google (NASDAQ:GOOGL) should take notice.
Google isn't in immediate danger of disenfranchising Samsung (NASDAQOTH:SSNLF), one of its key partners; however, a recent decision from Google could certainly have implications for Android licensees.
Google tries to strike a delicate balance
Much like Microsoft's foray into tablets and now smartphones with its Nokia acquisition, Google finds itself in the potentially awkward position of competing with its own customers with its Motorola smartphones. This hasn't really been a problem for Google and Motorola so far. However, with Google's recent launch of its Motorola Moto G, smartphone this dynamic could take a turn for the worse.
Because Google has set some of the most aggressive pricing among mid-tier devices with the Moto G.
Google's dominance of smartphone operating systems isn't likely to chance anytime soon, as Android still offers major economic advantages for original equipment manufacturers. However, it is worth noting that Samsung has also started working on its own brand of smart software. And although it's still unclear when, or even if, Samsung could try to ditch Google, Google could be potentially walking a thinner line than ever, as tech and telecom analyst Andrew Tonner discusses in the video below.
Fool contributor Andrew Tonner has no position in any stocks mentioned. The Motley Fool recommends Google. The Motley Fool owns shares of Google and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.