Google's (GOOG) Mobile OS Dominance May be Ending Soon (AAPL) (NOK)

December 31, 2012 8:13 AM EST Send to a Friend
Very few would question Samsung's dominance of the smartphone market. It's Galaxy S III and Note 2 have been hot sellers, each shipping tens of millions of units. It's enough to make an Apple (Nasdaq: AAPL) shareholder blush a little.

One of the biggest beneficiaries of all that hardware has been Google (Nasdaq: GOOG). Samsung has largely used Google's Android operating system in its mobile offerings, giving the Mountain View, CA-based search giant access to millions of users and new data.

However, all that might change in 2013. Reports out Monday have Samsung planning to launch smartphones using its Linux-based Tizen operating system. Tizen is formed from the abandonment of Nokia's (NYSE: NOK) MeeGo, with Samsung and Intel (Nasdaq: INTC) working on further development of the operating system.

News today actually comes following reports last week that a group of former Nokia engineers are girding to release an new MeeGo-based operating system called Salifish. The company doing the releasing is named Jolla.

But, Jolla doesn't have the same scale as Samsung. Given Samsung's scale, Tizen may be a more formidable competitor to Android. Along with smartphones, Tizen might be modified in a way to allow it to run on tablets, smart televisions, and possibly appliances in the near future.

It's not clear whether or not Tizen will make it to the States in 2013; current expectations have Samsung inking a deal with Japan's NTT Docomo and "other" vendors.

Investors in Google must have expected that devices makers would experiment with other operating systems/their own product. Now might be as good a time as any to evaluate positions and see how Google dominance of the smartphone operating system might hit its balance sheet in the coming years.

Google stock is indicated lower Monday morning.


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Comments

Samsung need Android most
Ahmad on 2013-01-08 02:40:28
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Samsung is not in business of programming like Google is, success of Sami came from full attention on hardware and not on software.
And other's took care of both which was so costly to them. People buy Samsung for android, if they are out or wanted to be out and independent, why stick to Microsoft. It mean stake is too hot for them and many cash to be made, but not alone for sure. nothing but the mistakes going to brings giants to pennies.

Samsung software
Rowlin on 2013-01-02 16:49:01
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I have the ES800 top of the line Samsung TV, the picture is incredible, but the software is miserable. Slow, cumbersome, and the voice recognition is terrible. Android on the Samsung phones is so far superior it's ridiculous. I would never buy any Samsung software, maybe if they copy Apple they can get something decent, otherwise it would be stupid to market there own software, their business would drop. There will be plenty of superior Android phone manufacturers people will choose.

Samsung has upperhand
BelgianWaffle on 2013-01-02 15:09:39
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What IT people don't seem to realize is that people don't even know they are running Android when buying a Samsung smartphone. There are a lot of commercials and a lot of their friends and family members has a Samsung. So they will buy a Samsung.

If they would drop Android and go all out with Tizen people won't even know that the OS changed. And because Tizen can run Android apps, everything would be OK.

So if Samsung doesn't want to be this dependent on Google they should release their flagship phones with Tizen.


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