Your point about brand loyalty is sound, but it does indeed demonstrate the fragmentation issue. As Red Storm pointed out, it requires Android 4.3, which is not yet available on these devices. Why is the latest version of Android not yet available on Samsung's current and previous generation flagship smartphone models? Because it takes time and manpower to make a new OS work for each and every device with each and every combination of SoC, screen, camera, RAM sizes and speeds, WiFi/broadband modems, and God knows how many other chips and controllers inside.
Improving software to get better battery life is NOT a fragmentation problem, it's something required if you want to have more and more devices (like bluetooth-linked watches) connected to your smartphone. The real problem is this, which you quoted:
but it doesn’t look like Samsung’s going to support other phones, even those that run Android.
No one complains when new features are added to any other new traditional operating system or update, but for some reason on Android it's a major problem. I get that the pace of updates is much faster in the mobile world, but people need to get used to that.
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