Meet the Asian Android-killer from Intel and Samsung

Tizen will include the more desirable features of its competitor, but will also leave room for regional adaptation.

By Minyanville.com Mar 18, 2013 1:01PM
 Businessman in China copyright Brooklyn Production, Corbis

Tizen, the new mobile OS from Samsung and Intel (INTC), is a lot like Android (GOOG). Both operating systems are open source and Linux-based. They look and feel about the same, and smartphone users won't have any problem switching between the two.


Their logos, however, suggest a difference. When Google chose a personable green robot to represent Android, it was selling the system's intelligence, with its integrated "brain" of Google Web apps and services. Tizen, on the other hand, is portrayed as a pinwheel -- a toy that spins in whatever direction the wind is blowing.


In other words, it's a platform that doesn't discriminate.


Android has had a remarkably successful run in the four years since it debuted. Today, it comes on about half of the smartphones sold globally. In emerging markets, though -- and Asia in particular -- this success has been an awkward one.


Google might be the dominant search engine and Web services provider in the U.S. and Europe, but across the Pacific, that position is held by the likes of Baidu (BIDU), Naver, and Yahoo Japan (YAHOF). Google's Web apps are not always available, and when they are, they're not generally preferred. The fact that Android is free, and has a large application base, means that manufacturers have adopted it anyway, but they've been forced to offer customized versions that strip away the Google content and replace it with less native content.


The situation has become particularly bad in China, a country Google famously "left" in 2010. Many of the company's services are blocked, and even Google Play -- Android's app store, and its most direct source of revenue -- is largely nonfunctional. Nevertheless, the OS has grabbed two-thirds of the smartphone market. Third-party app stores are common, and Baidu's search engine has replaced Google's on the vast majority of these devices.


This situation leads to a bad outcome for everyone: Consumers are faced with an inconsistent and malware-riddled experience; Google isn't making money; Baidu isn't finding the level of optimization and nativity it wants; and Chinese smartphone vendors are prevented from making a deal with local companies who value the market more. In 2012, Samsung sold 30 million handsets in China -- taking 18% of the market. That's the kind of leverage that, in a competitive environment, would turn the company into a king-maker. Instead it's stuck in a partnership with Google, who sees little revenue from Chinese sales -- and since the Galaxy S3 (and now S4) maker receives a percentage of Google's (nonexistent) revenue, there's good reason to believe the rumors of Samsung's discontent. The company would make more money, and better tailor its products, by striking a bargain with Baidu in China, Naver in South Korea, and so on.


Throw in the Communist Party's displeasure with Android, which the media has already reported on, and its interest in fostering a mobile environment that will conform to national policy -- that is, snoop on its users -- and the incentive for change is strong.


Enter Tizen, the pliable OS. Samsung and Intel may be spearheading its development, but they've been joined by a conglomeration of Asian telecoms, including Huawei, KT Corporation (KT), NTT Docomo (DCM), and SK Telecom (SKM). These companies have their thumbs to the wind -- and their noses to profit -- and it's leading them away from Google. Tizen -- due to ship on Samsung devices later this year -- will retain Android's more desirable features, like the low price tag and the cross-compatibility between markets, but it will also leave room for regional adaptation, and allow for synergy with a wide range of content providers. Its similarity to Android means that applications will port easily. With Samsung's size, the company shouldn't have much difficulty convincing developers to make that happen.


Despite Tizen's clear advantages overseas, analysts in the U.S. tend to portray it as a response to Google's purchase of Motorola Mobility. The theory goes that, with talk of a Google X phone, and speculation that new releases of Android will be strategically timed, manufacturers are worried about the platform's neutrality. This may be true, but there's a more immediate reason for Google's clients to look for an (at least partial) exit: Android is hurting their bottom line, in the international markets that happen to be growing the fastest.


The new operating system's progress will carry implications not just for the smartphone industry, but also for Google's attempt to extend its search dominance. If Android fails, there will be nothing to prevent regional leaders like Baidu from entrenching themselves further, by entering partnerships with the mobile manufacturers. It will be a strange twist of fate if Google, the paladin of the open Internet, finds itself against the wall because Android wasn't open enough.


More from Minyanville

Tags: GOOGSSNLF
2Comments
Mar 18, 2013 1:42PM
avatar
Google's Android shareware give away is a pure advertising gimmick so that Google could infect everyone's mobile device and "snoop" on their web consumption habits to force ads down their throats. It would be an ironic twist if another shareware give away undoes Google's business model. There is absolutely nothing high tech about running skunkware on high powered processors with multi-cores and gigabytes of memory and storage that cost between $300 and $900 each made of beer cans and plastic. Google's about to get Appled Asian style.
Mar 18, 2013 4:38PM
avatar

Things keep getting more interesting!

 

In addition to this Intel-Samsung OS offering, Microsoft is making respectable gains in China (and Europe, among others) with Windows Phone (WP8 at present). The exclusivity arrangements on some of the largest Chinese carriers to carry Windows Phone devices at competitive prices--China Telcom snubbed Apple by going with a Nokia WP exclusive--strongly suggests a genuine antipathy toward the "other two" players, Android and iOS. While still undeniably quite strong, they do not have the near-ubiquitous clamoring for their respective devices as is seen in the U.S. If Samsung successfully muscles in on Google's turf with a compelling alternative, China and other Southeast Asian markets might not merely tip the scales. They very well could "rip the scales"--right from their metaphorical supports. How this all sorts out should prove beneficial worldwide--hopefully.

Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

116
116 rated 1
274
274 rated 2
447
447 rated 3
698
698 rated 4
633
633 rated 5
652
652 rated 6
650
650 rated 7
491
491 rated 8
268
268 rated 9
125
125 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
TAT&T Inc9
VZVERIZON COMMUNICATIONS9
EXCEXELON CORPORATION8
AAPLAPPLE Inc10
ATVIACTIVISION BLIZZARD Inc10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.