A vertically integrated manufacturer does not necessarily mean their costs will be dramatically lower than the competition. For example, Apple doesn't do any manufacture themselves, and yet they have costs so much lower than the competition that they are able to define entire new markets in the time it takes for their competition to develop cost-competitive supplies. This has happened three times now, firstly with th…
I assumed the problem was developing something that could compete with the software (which might have happened with Android 3?).
Edit: My problem with Samsung is abandonware -- drivers, etc -- but I don't know if they are worse than others.