Intel Corporation (INTC), Apple Inc. (AAPL): Will Google Inc (GOOG) and Samsung End Up Frenemies?

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Samsung has been slowly testing the waters, including the Media Hub on devices to get users accustomed to using multiple platforms with their devices. This has given the company an unusual ability to work inside an already established ecosystem. These closed environments are extremely difficult to break into — unless you are invited in through the front door. So the seeds of a frenemy-ship are sown.

A new operating system
Samsung recently announced that by August it may release a new smartphone that works on its open source operating system called Tizen. The premium device planned for release at the end of the summer will give developers even more control in writing software to utilize the new platform. It is the result of a collaboration of several hardware manufacturers including Huawei Technologies, China’s largest manufacturer of telecommunications equipment.

Many see the move by Samsung as a direct response to Google Inc  (NASDAQ:GOOG)’s purchase of Motorola Mobility for $12 billion. This move was viewed as a precautionary response to the nearly 40% market share achieved by Samsung devices, making it the largest manufacturer of Android products by a significant margin. 96% of Samsung’s sales come from Android-based devices, meaning that the Tizen response is a safety measure taken to protect against a safety measure. This is how true frenemies distrustfully work together.

Even Samsung, however, realizes that the move is a risk that could sour the relationship. If Google Inc  (NASDAQ:GOOG) becomes the single dominate player in the market place — think Mr. Softy and Windows — the less-than-friendly move might sting Samsung in the end. Even with Android gobbling up market share, it is hard to imagine a world where iOS loses relevance. As long as consumers are willing to accept multiple OS alternatives, the move seems a sensible one by the South Korean firm.

Shifting loyalties

As we have seen from huge patent cases between technology firms with ongoing supplier relationships, many companies in the space openly fight with one another and simultaneously relying on each other’s products. Battle lines between operating system, ecosystems, and hardware make Samsung and Google Inc  (NASDAQ:GOOG) very probable frenemies that, at least for now, are much better as a team in the smartphone and tablet spaces than they are on their own. Each have independent business lines that make them formidable opponents, but as these titans dance with each other for dominant position, both remain strong in the industry.

The article Will Google and Samsung End Up Frenemies? originally appeared on Fool.com.

Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends Apple, Google, and Intel. The Motley Fool owns shares of Apple, Google, and Intel.

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