New kid on the block
While the new Tizen OS has not even been officially released — Samsung is expected to unveil a high-end smartphone that uses the platform by the end of the summer — it’s already getting a lot of ink. At the core of Tizen is the reality that Google doesn’t command the same loyalty or usage that other Asian options do in that region. Android has been a free and workable solution for Asian smartphone needs, but in many cases, the manufacturers also include a user interface that circumvents most of Android’s functionality. This creates the proverbial lose/lose scenario.
Under this construction, Google isn’t making any money because these devices essentially work around the native functionality that drives users to search and other Google apps. The local search engines are unable to really integrate functionality into smartphones that rely on Android, meaning that users receive an experience that lacks optimization. Lastly, because all of these manufacturers are reliant on Google, they can negotiate better terms for themselves with the local market. The need for an alternative is obvious and being addressed with the aid of Intel, one of the point developers of Tizen.
With the new OS, all of these problems can be addressed. This does mean, however, that Google is suddenly facing some real competition in that part of the world. The news is probably worst forResearch In Motion Ltd (NASDAQ:BBRY), which needs another obstacle like it needs cancer. Just as Microsoft is expanding its relationships with Windows, Nokia Corporation (ADR) (NYSE:NOK) may consider creating a Tizen smartphone, but in all cases, the race for third has become far more complex and interesting. It’s too soon to call this battle, but investors should watch carefully, because the fates of all players may come into play.
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The article Smartphone Wars: The Battle for Third Place Has Gotten Interesting originally appeared on Fool.com.
Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends Google and Intel and owns shares of Google, Intel, and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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