> This is not, as you think, simple. There are no margins in commoditized devices. If they all trend toward being identical and low cost, all partners will find the most exceedingly clever ways to differentiate from each other or boost margins. Software is a prime target.
Except a high quality Android phone is not a commodity. It's a premium product that no one (outside the Nexus line and the OG Droid) has created. If there's a segment of the market interested in such a product (which is what everyone believes), then they will be willing to pay a premium for it.
> As this article points out, forking Android (especially to Samsung) is becoming an increasingly viable alternative to playing ball with Google, and the consequences would be pretty disastrous if they were to do that.
Forking is not an issue because that would remove access to the Play Store, without which a smartphone simply would not be competitive. Look at the Kindle Fire - it had the advantage of being a tablet (where Android apps are still being developed), coming out quite a while back (again, app situation more favorable than now), having an existing content ecosystem (which Samsung doesn't), and being their first foray into the hardware/Android market (not the case for Samsung).
At this point, Samsung really doesn't have any choice but to stick to just skinning Android if it wants to keep selling phones.