Daily Management Review

Bloomberg: Google is negotiating promotion of its products on Samsung gadgets


07/30/2020


Google's parent company, Alphabet Inc., and South Korean electronics manufacturer Samsung are discussing promotion of Google products on Samsung devices, Bloomberg reported.



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According to the agency’s sources, Google will be able to tighten control over the search engine on Samsung devices. While the Android operating system is already mainstream on the South Korean manufacturer's devices, Samsung will be promoting the use of Google's digital assistant as well as the Play Store.

For Samsung, this could mean less integration of its own products, including the Bixby digital assistant. However, amid falling demand for smartphones amid the pandemic, the company is looking for ways to increase revenue, and its bargaining power has weakened.

The details of the deal were not disclosed, but Bloomberg notes that Google pays billions of dollars annually to make its search engine default in Apple's Safari browser.

Samsung is the largest smartphone manufacturer in the world. The company's sales last year approached 300 million mobile devices. According to IDC, in the first quarter of this year, sales of Samsung smartphones fell by 18.7% in annual terms - to 58.4 million units.

source: bloomberg.com