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Samsung draws closer to Google amid smartwatch launch

  • Samsung's (SSNLF, SSNGY) occasionally tense relationship with Google (GOOG) - Samsung is by far the world's biggest Android OEM, but its efforts to customize if apps, services, and UI often haven't gone over well with Google - appears to be thawing, judging by the announcements at Google's I/O conference.
  • Most notably, Samsung is now allowing its KNOX mobile security platform to be built into Android. KNOX provides a slew of data protection, authentication, and device/app management features for enterprises who might otherwise be nervous about letting employees work with Android hardware.
  • Newly-public MobileIron (MOBL -2.6%), one of several device/app management software firms whose feature set overlaps to an extent with KNOX, sold off a bit today, but closed well off the day's lows.
  • Samsung has also announced the Gear Live, a $199 smartwatch based on Google's Android Wear platform. The launch comes even though Samsung is already selling two smartwatches based on its Tizen platform (still suffers from a weak app ecosystem), and Google is preventing OEMs from installing custom UIs (such as Samsung's TouchWiz).
  • Samsung suggests it'll still try to offer some proprietary apps/services for Android Wear smartwatches. LG and Motorola are among the other OEMs backing the platform.
Comments (2)
  • Joseph Dedvukaj
    , contributor
    Comments (578) | Send Message
     
    The clear winner from the wearables revolution is Quicklogic (QUIK) with its ultra low power and reprogrammable chip sets used in Samsung products. Mark these words.
    26 Jun, 08:44 PM Reply Like
  • Zipper0
    , contributor
    Comments (593) | Send Message
     
    Samsung just cut its current-quarter orders for the Galaxy S5 by 25%, and its CFO just described its upcoming Q2 results as "not too good." Meanwhile, Morgan Stanley expects significant upside to Apple's current quarter. Samsung is a sinking ship, and the entire Android industry in general is experiencing significant, irreversible commoditization faster than anyone expected. In Q4 of last year, Apple was making 87% of all smartphone industry profits, according to Raymond James, but in the next quarter or two that figure will rise even higher to 95% or so. With 80% global market share, one would expect Android players in general to make 80% of the profits at least, but the opposite appears to be true. The higher the market share, the lower the profits, and the lower Samsung's stock price (which depends on profits) goes, which is already close to its 52-week lows.
    26 Jun, 10:02 PM Reply Like
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