Why Samsung and Amazon Stumbled
Jeff Bezos's stocks took a tumble too.
July 30, 2014 - 11:00 am
The South Korean electronics giant had planned to debut its new smartphone running the company’s home-brewed Tizen operating system in Russia, but the debut has been postponed indefinitely:
It didn’t give any details about what precisely needed to be defined or how long the delay would be, but the reference to the ‘Tizen ecosystem’ hinted at fresh concerns over the availability of apps and related services that are needed to make the product sell.
Such concerns were, in part, behind the decisions of network operators NTT DoCoMo and France’s Orange SA to pull out of promotional campaigns launching the Tizen phone.
Samsung has already launched Tizen-driven smartwatches and cameras, but is desperate to extend it to smartphones in order to gain more control over the end-user experience in its most important products. Its license agreement with Google GOOG restricts its freedom to make more than cosmetic changes to the Android system.
Copying somebody else’s hardware to run somebody else’s software and buying up marketshare is easy. Creating your own ecosystem to protect yourself from even cheaper copycats and bossy software providers is hard.