As we have noted before, Samsung has been on roll in recent years; and this is expected to continue. But now, the global consumer electronics company also wants to grow its software business. Will this work? We’ll see.

Knowledge@Wharton reports that:

“Samsung and Apple are the two primary contenders in the global mobile race, and both are vying for smartphone and tablet dominance. According to research firm IDC, Samsung and Apple together control 51% of the worldwide smartphone market, with market shares of 29% and 21.8%, respectively. The No. 3 smartphone maker, Huawei, has 4.9% market share. Samsung also controls 42.5% of the Android market, according to Gartner.”

“Samsung may not have much choice but to push to develop additional innovative software applications. Kendall Whitehouse, technology and media editor at Knowledge@Wharton, says that Android smartphone vendors face the challenge of differentiating their products to avoid competing solely on price.”

“Samsung’s software ambitions may go beyond offering its own unique applications. The firm has been developing another open-source operating system called Tizen and plans to launch high-end smartphones based on the new system in August or September, according to Bloomberg. Samsung is one of 12 companies developing Tizen as an Android alternative.”

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15 Replies to “Samsung Wants to Be Your Software Company, Too”

  1. Samsung has recently been dominating the market for electronics and has been growing respectively. One great thing that they are doing is expanding their company and trying to go into the software side of it. I feel that this is a great chance for them because when opportunity knocks on your door, you must capitalize on it and make it work. When a company has that much of a variety of services and products to offer, it gives them that much more of a wide-range customer following.

  2. I think Samsung is doing a fantastic job with competing with the Apple giant. I agree though that as of right now their only main competing point is on price. If Samsung can start bringing in innovative software designs I predict we may even see Samsung surpass Apple in the global market place.

  3. In my opinion Samsung going into software is a good move because since they are already a global leader in the cell phone industry, why not branch into software? By doing this they will be able to advance farther than many other companies in the race for top dog.

  4. Although i don’t own any Samsung products I probably will in the future. Apple really hasn’t made any big changes in its software while Samsung is making drastic improvements. They say that Steve jobs created iphones past the five, and for apples sake I hope so.

  5. Samsung should start making software and and create their own platform. I love apple, but they haven’t been innovative enough in last two year especially in the mobile world. But it is going to be tough for samsung to rival ios and android. Also i belive blackberry is slowly making a comeback and rivaling windows phone for the 3rd spot.

  6. Although some disadvantages are indicated in this article, I still think that Samsung should develop their software (operating system) for two reasons:
    1. Google had acquired Motorola last year after Google made promise to Chinese government. If Samsung would not have their operating system and still use Android, it might be hard for Samsung’s smartphone to compete with the new Google phone. For example, Google might charge Samsung for using Android after five years.
    2. market share of Samsung’s smartphone is almost 30% in the world. Samsung has strong brand perception. It is an advantage for them to launch the new software, especially this innovation could be connected with their smartphone. Samsung could increase their product value and earn more money by selling smartphone with their operating system, just like Apple did.

  7. I think it is a great idea for Samsung to do this. Many times, the issue that some users have with Samsung devices are the glitches they have once in a while with the Android software by Google. Samsung has to build their devices based on Google’s Android standards and can sometimes be limited. This new software will let their products to be fully compatible between software and hardware and ultimately not be limited by the offerings of Android.

  8. Samsung seems to be the new up and coming brand for electronics and now apparently software. I know many people who absolutely love the Samsung brand and especially their Samsung Galaxy phone. I think it’s great that Samsung is building their brand up and competing with Apple. Personally, I can’t see myself switching from Apple to Samsung. Who knows though…maybe one day Samsung with surpass Apple?

  9. Samsung has done a great job of innovating and stepping up their game in the smartphone and tablet arena. it will be interesting to see how Apple will answer this new found competition. And I mean new found because I do not think there has been a real threat to Apple’s market share and/or products in a while. I do think Samsung has a while to go to get loyal Apple users to switch. Honestly, I am one in regards to tablets, computers, and will finally be an iphone user next month. I have had such a bad experience with the Android evo 3d by htc that I will not continue to utilize the android system. Maybe software will be the right move for Samsung, but they should tred carefully as it can also be a thorn in their side and detract from their success thus far.

  10. It is a good try for Samsung to develop their own software system. Apple has the highest gross margin in smartphone market, the apple store contributes a lot to Apple’s gross margin. Samsung has use google’s Android system for a long time, it is the right time for Samsung to promote their own system.

  11. Since the discontinuous invention of iPhone, I believe Samsung has the strategy that it followers but offer more choices in terms of price and screen size. The cannibalization is a must for Samsung in competing with Apple. I think the largest company for Samsung would not be Apple, but rather, Google as it is entering into hardware production such as “Nexus 4”. Therefore, Samsung had to develop its own operating system, no matter how it is not recognized as promising.

  12. This is divergent from Samsung’s core competencies. They aren’t an operating system maker, they make software add ons/Launchers (i.e., TouchWiz). If anything, this is saber rattling to remind Google that Samsung is Android’s greatest proponent at this point, and if they were to have another viable operating system, it could be detrimental to android’s growth. However, it would be more detrimental to Samsung to not have android, than for android to not have Samsung.

  13. The operating system in the smartphone is very crucial to user. a easy-friendly and high-quality system always retains the consumers. when we have been accustomed to a operating system, it is hard for us to choose the other one. Therefore, the Samsung will face a big challenge if it change current operating system. Even though growing its own operating systems can bring Samsung to more profits, it will put Samsung into the risk in the competitive smartphone market.

  14. Each company is willing to pursue innovation if possible. So is Samsung. However, I think Samsung’s new operating system will face tough challenge since it is hard to convince users to change the operating system. Take me as an example. I am a user of iphone. When I signed the contract with AT&T, I bought a Samsung smartphone, too. I tried to use it for a week, however, I couldn’t adapt to the Android system totally. Although I don’t think ios is perfect, ios has affected me a lot. I think most users will change the operating system only if the new one has more special or smarter features.

  15. Samsung plays an important role in the smart phone market and spends a lot on innovation.Turns out Samsung intend to fill the blank and has ambitions to open the operating system market. I doubt it will works or fail like Windows 8 system.

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