The controlling Lee family is trying to reinvent Samsung as a purveyor of Internet-connected appliances to grab share of a market that may be worth $7.1-trillion (U.S.) by 2020. Samsung wants to generate revenue from Tizen applications and services just as Apple Inc. and Google do from their operating systems, and the Suwon, South Korea-based company is emphasizing TVs and consumer electronics after falling a year behind schedule on a Tizen-based phone.
â€œIn smartphones, thereâ€™s no chance that Samsungâ€™s Tizen can edge out the two dominant operating systems,â€ said Claire Kim, a Seoul-based analyst at Daishin Securities Co. â€œBut in TVs, Samsung may have a chance.â€
Samsungâ€™s rise to No. 1 in global phone sales depended on Googleâ€™s Android. Nearly all of the 243 million smartphones Samsung shipped through Sept. 30 ran the software, which Google typically gives away in return for mobile advertising revenue and a share of app sales.
Samsung faces the strongest challenge to its phone supremacy after posting the smallest quarterly earnings in more than two years. Operating profit at the mobile-phone unit, the companyâ€™s biggest cash generator, slumped 74 per cent in the September quarter and sales fell about 33 per cent.
I own an Apple TV and I just canâ€™t get excited about paying extra for a smart TV when I can plug one of those or a Google Chomecast (or Amazon Kindle, Rokuâ€¦.) for under $100 (or under $40 for the Google Chromecast) into the TV and have a smart TV.
The smart appliance market may become huge but I canâ€™t see the smart TV one being that big of deal at all, not when I can get my apps on my tablet and stream to my television.