While it might not be seem immediately apparent, the above graph, which was created by Enders Analysis and shown on Benedict Evan’s website, suggests Google may be missing out on approximately 30% of its profits. The reason, as Evans and a variety of sources suggest, is that the Android smartphones released in China do not come installed with key Google software, including Google maps, Google search, Youtube, and Google Play.
In China, legal regulations and restrictions are cited as the major factors barring Google’s services from being installed. Due to the existence of such laws, popular smartphone brands like Huwei, ZTE, Lenovo, and Xiaomi are unable to include in their Android platforms app services that come directly from Google.
With regard to the Chinese smartphone users, Google appears to also be encountering a few notable issues. According to sources close to Trendinsider and Technews, app developers known to create software for China’s smartphones market apparently have little, if any, preference for using Google’s development software. The number of people there who actually rely on Google’s advertising platform, likewise, also appears to be relatively scarce.
Missing out on potential profits, especially those coming from a consumers segment that is rapidly growing, is obviously no good news for the internet giant; Making Google’s financial prospects even less optimistic are rumors concerning Samsung’s eventual decision to abandon Android.