Like Google Inc (NASDAQ:GOOG)‘s Android, Tizen is an open-source mobile operating system based on Linux. To date, its development has been spearheaded by Samsung and Intel Corporation (NASDAQ:INTC).
Samsung has been rumored to be planning a move away from Android in favor of Tizen. Right now, that seems unlikely, but a contest like this lends credence to that theory.
Samsung has made billions from Android
At first glance, the idea that Samsung would abandon Android seems ludicrous. Even factoring in Samsung’s recent 20% drop, shares are still up nearly 40% since the beginning of 2012.
Most of that gain has been due to the billions of dollars Samsung has raked in on its Galaxy smartphones. The Galaxy lineup, which is now on its fourth generation, has — until very recently — been the closest thing Apple Inc. (NASDAQ:AAPL)’s iPhone has had to a true competitor.
Perhaps that’s why Samsung and Apple Inc. (NASDAQ:AAPL) have been accounting for all the profit in the smartphone sector. In the first quarter of this year, Apple raked in 57% of the profit generated on mobile phones — Samsung took the other 43%.
And while Samsung’s phones are well made, they wouldn’t be what they are without Google Inc (NASDAQ:GOOG)’s Android. In fact, the release of Google Inc (NASDAQ:GOOG)’s fourth version of Android — Jelly Bean — largely coincided with the widespread adoption of Samsung’s Galaxy phones. The Galaxy S3 was the first of Samsung’s flagship phones to put up iPhone-quality numbers, and the first to run Jelly Bean.
Why Samsung might want to go in a different direction
That said, despite all the success Samsung has had with Android, the company might want to end its partnership with Google. Although Samsung is riding high today, that might not always be the case.
Because Samsung does not control the operating system, its customers can choose to go with a different Android OEM at any time. Reliance on Google Inc (NASDAQ:GOOG)’s services may keep one tied to Android, but not to Samsung. Thus today’s Galaxy S3 fan could be tomorrow’s HTC’s One owner.
Moreover, there’s the looming possibility that Google could choose to favor Motorola when it comes to Android development. Google purchased the handset maker in 2011, and though it has promised to operate the unit independently, there’s always the outside chance that Google could change its mind.
Mutually assured destruction
And perhaps that’s the real reason why Samsung keeps Tizen around — a sort of insurance policy. Should Google Inc (NASDAQ:GOOG) decide to favor Motorola, Samsung could abandon Android in favor of the in-house Tizen.
Of course, Google has much to lose if Samsung decided to abandon its mobile operating system. As much as Android advancements have helped Samsung sell more phones, Android wouldn’t have the market share it has today if it wasn’t for Samsung.
In an interview at the D11 conference, Google Inc (NASDAQ:GOOG)’s Sundar Pichai addressed the company’s relationship with Samsung.
“[We] owe a lot of success in Android to what [Samsung has] done…Today I see a pretty symbiotic relationship…[We] intend to be very close partners…We’re working on projects for next 12-18 months, collaboration is getting deeper.”
Obviously, Android is very important to Google in terms of the ongoing transition to mobile. The more Android adoption grows, the more users Google Inc (NASDAQ:GOOG) gets on its web services.
What’s with Intel’s involvement?
But what’s Intel Corporation (NASDAQ:INTC) doing with Tizen? Why is the chip maker involved in the mobile operating system?
So far, Intel has struggled with the shift to mobile. Although Intel Corporation (NASDAQ:INTC) is the dominant provider when it comes to traditional PC processors, the company is largely a non-factor in terms of mobile chips.
An upcoming Intel chip will make its way into a Samsung tablet, but for the most part, the industry is dominated by companies like Qualcomm and Nvidia, with Apple Inc. (NASDAQ:AAPL) using its own chips.
By being involved with Tizen, Intel Corporation (NASDAQ:INTC) may have a better shot at becoming a mobile chip supplier. From its early days, Android was optimized to run on ARM chips — Tizen will likely be designed for Intel’s ATOM processors.
At this point, without any Tizen phones even on the market, it’s far too early to predict Intel’s mobile dominance. Still, Intel Corporation (NASDAQ:INTC) investors should keep an eye on the Tizen project.
Another mobile operating system?
Given the struggles of Windows Phone and BB10, it’s hard to envision Tizen being a success. With over 90% of the smartphones in the marketplace running iOS or Android, the mobile operating system market seems to have settled into a duopoly.
Nevertheless, Tizen continues to exist as an Interesting side-story for mobile investors. Should Samsung decide to abandon Android, it could have a devastating effect on Google Inc (NASDAQ:GOOG)’s mobile ambitions. At the same time, it could give Intel Corporation (NASDAQ:INTC) a shot at becoming relevant in the mobile chip market.
The article Is Samsung About to Abandon Android? originally appeared on Fool.com and is written by Salvatore “Sam” Mattera.
Joe Kurtz has no position in any stocks mentioned. The Motley Fool recommends Google and Intel. The Motley Fool owns shares of Google and Intel. Salvatore “Sam” is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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