11/16/2013

Samsung is working on their own Operating system, How risky a move is it really?

If Samsung has anything to say about it, the world of Mobile Computing software could be shaken up, as they are currently working on the Linux based Tizen Operating System, in fact it was just reported on Tuesday that Samsung has 36 supporters on side for this OS including Anti-Virus company Macafee and video game company Konami.

The question that has to be asked though is this “Is Samsung really making a smart, calculated move and how will this effect Android deployment / Market Share? ”

According to Market research group Localytics, Samsung devices make up 63% of the Global market of hardware running Android software.  This CBC article states that

“About nine in every 10 smartphone users are tied to either Google’s Android or Apple’s iPhone ecosystems, generating profit for Google and Apple every time they purchase a game or application on their smartphone”

The implied path that Samsung, and their partners, could be looking at with releasing a 3rd Major Operating system to the Mobile market, is to shake up the ecosystem created by Google and Apple, thus getting a piece of the action.  This may be confirmed by the following quote from the article, attributed to Kang Yenn-Kyu, an associate research fellow at state-run Korea Information Society Development Institute.

“"With only hardware, its influence is limited,…Samsung's goal is to establish an ecosystem centred on Samsung."

As someone who follows, and develops Websites that run on this Technology, I personally can see two potential ways moving in this direction could effect the market.

1. Samsung Successfully deploys the Tizen OS, taking their hardware share of Android’s users (that being potentially 63% of 1 Billion Activated Android Devices)away from Google and creating a Market that offers users Windows, Android, iOS and the Tizen Operating system choices

2. Samsung owners jump to other Android running Devices as they want the Operating system rather than staying loyal to Samsung’s hardware.  This potentially could damage Samsung long term revenue, as articles state that Samsung makes 17% of their revenue off systems running Android.

This potentially could impact google. as the Android software system delivers to them very valuable, resalable user data.  What are your thoughts on the potential this has on the market?

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