The third quarter of the year will see South Korean electronics manufacturer Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) release its first phone that runs its homegrown operating system in an effort to be less dependent on Google Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) and Android.
Samsung breaking Google’s hold
Despite the fact that Google has largely paid all damages to Apple Inc. (NASDAQ:AAPL) in the two companies ongoing patent fights, Samsung is trying to break the yoke that chains it, as the world’s largest producer of Android powered smartphones, to the search-first company that reaches into every aspect of the connected user’s life.
Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) is dubbing the phone the Samsung Z and will release it in Russia with the understanding that it will reach other markets quickly following its release. The untested Tizen, Samsung hopes, will give the company an opportunity to sell software and services without sharing revenue with others.
“It enables Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) to hedge its bets much better compared to some of its rivals,” Andrew Milroy, a vice president with consulting firm Frost & Sullivan, told the BBC.
“However, it is unlikely to make a significant dent on the Android market share.”
San Francisco is playing host to a Tizen developers conference this week for that will see both Samsung and Intel embracing the community of potential money makers.
Samsung has already launched a number of cameras, televisions, refrigerators, and in-car systems that run Tizen, but the smartphone that Samsung promises it the eagerly awaited item amongst the others.
Balking carriers
Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) had planned earlier this year to release the Tizen smartphone in Japan and France, but couldn’t announce the launch as carriers shied away from the device owing to weak demand.
“Samsung is seeking to integrate its own components, displays, software and services,” said Ian Fogg from the IHS consultancy.
“Using Android makes the firm dependent on Google Inc (NASDAQ:GOOG) (NASDAQ:GOOGL), meaning its ability to differentiate its products is less strong than if it had installed its own operating system.
“But by going down the Tizen route, the risk is the firm doesn’t have enough high quality apps available to make the devices good enough for consumers.”
Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930)’s decision to launch in Russia is no accident as the smartphone maker looks to developing markets that see phones sold through less traditional channels than carriers. Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) are firmly rooted in major markets and Samsung is looking to establish itself with Tizen in India and Brazil following the Russian launch.
