I completely disagree.
The difference in expense of the phone has little to do with the outer shell but more what's inside it. HTC's always have too small of batteries and IMO Sense is terrible compared to the current touch wiz. I'd hardly consider getting more bang for your buck by compromising hardware and software so the outer shell feels better in your hand.
I keep my iPhone 4S in a lifeproof case which feels like really cheap plastic. My point of mentioning that is if I keep one of the best feeling phones ever (my opinion) in a case what does it matter? Unless you are the type that doesn't use a case then maybe it will matter? I still wouldn't trade the material of the shell for software/hardware. IPhone 5 turns into a mess without a case and that supposedly "nice" material.....yeah, no thanks...I'm waiting for the next iPhone BECAUSE of build material. Coated aluminum is fine but you'll need to do it like Motorola for me to buy into it..
What hardware/software compromises? We all know it's pretty easy to root and install custom ROMs. Much easier to jailbreak/root than on iPhones. HTC uses Qualcomm SoCs. Hardly a compromise. Qualcomm makes some of the best silicon for mobile devices and second only to Apple's AX series. Software is still the same at it's core (it's called Android) which provides most of the functionality of the phone.
Your logic is deeply flawed. Does that mean we shouldn't give a crap about build quality/material simply because we probably would get a case? No. Build quality is build quality regardless of whatever 3rd party accessory you put on it. Same with build material. Samsung's Exynos isn't that great. iPhone 4S A5 still competes very well with Galaxy S3's SoC, which is pretty sad because the A5 is over one year old.
iPhone 5 doesn't turn into a mess. It could but most of the people I know who use it normally (i.e. they don't just toss it around as if it were made of diamond) have a few marks from drops and whatnot, but still look great. Anodization and coated aluminum are different. Just like your flawed logic and actual logic.
Just curious, what materials do the HTC and Nokia offer that are of higher quality than the polycarbonate used in the S3?
They're all "plastic" but we know there are different types of plastic, different coatings, different thicknesses, different processes to create the plastic and most importantly plastic structure (unibody versus piece by piece). This holds true for aluminum. Not all aluminum is the same and we haven't even gotten into different alloys and grades and coatings/anodizations.
I use my phones without a case and my iPhone 5 is spotless since I got it on release day. My Note 2 is 3 weeks old and there are dings all over the plastic and scuffs on the back cover already!
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Substantially thicker plastic that is rubber coated on HTC phones which does not scratch nor creak. Then on the Nokia's they also use thicker plastic with a unibody design.
HTC and Nokia devices most definitely feel more substantial in the hand compared to the latest Galaxy phones.
I really like how HTC uses plastic but it the end result turns out really premium looking and feeling. It doesn't feel like cheap or flimsy but solid.
They don't want more spotlight. If they did they would spend as much on advertising and marketing as Samsung did last year (re: 4billion, highest in the industry). Samsung pushed the Galaxy brand hard and it actually worked. The other companies either don't have these kinds of resources or are waiting for a miracle - or both.
As for Google, they could be worried. Tech guys on forums know the difference between the Galaxy and Android brands but the general consumers (you know the ones that make up Android's huge marketshare but don't know much about tech) do not. I've talked to a few people over the last month who told me they want to try the Galaxy phones because they heard that "Galaxy was better" than their iPhones. No one mentioned Android.
There were rumors that Samsung wanted to drop Android in favor of their own OS. With TouchWiz become more useful and popular, Samsung may be able to pull it off in the future. They'll lose the Android guys, but keep the consumers hooked on the Galaxy brand - and there will be a lot of them by that time. Then Google should be concerned.
Of course they want it, whether they can afford to spend on marketing is another thing. They all just don't want to be a dumb prick like Samsung who thinks bashing Apple by saying their stuff is crappier is good marketing. I rarely see Samsung marketing their product. I see Samsung saying hey guys we're better than Apple but we won't tell you why because we actually suck so bad.
Of course tech guys know the difference. That is so obvious. This is technology! If technology enthusiasts don't know the different then who does? Either way, Google doesn't care about Galaxy vs Android UNLESS Samsung ditches Android. If Google wanted Android to be a household term, they would market Android themselves instead of just providing free source code and letting it be.
Maybe Samsung will be able to pull it off but I doubt it. All the apps that run on their Galaxy devices are Android apps. There is a huge ecosystem developed by Google. Apps and other multimedia content in Google Play. Samsung wants to lose that and start all over? No. They will customize Android more and more to fit their own needs. But they won't say goodbye to Android itself. Don't tell me Tizen is their answer. Because I will say Meego as my answer.