📺 Stream EntrepreneurTV for Free 📺

Samsung Finally Has a Phone That Runs Its Own Operating System But the Z1's launch is a far cry from what the company originally intended.

By Geoffrey Smith

entrepreneur daily

This story originally appeared on Fortune Magazine

Samsung Electronics via Twitter

After years of delays and false starts, Samsung Electronics Co. has finally launched a smartphone that runs on its own Tizen operating system, a landmark move that may mark the beginning of the end of its dependence on Google Inc.'s Android system.

But the launch of the Z1 phone in India at a price of only $92 makes it clear how much the Korean has scaled down its ambitions for Tizen, at least in the short term, and how far it still has to go before it can wean itself off Android.

The company has pared the offering down to a no-frills product aimed at first-time smartphone buyers at the bottom end of the market, who won't demand the comforts and capabilities of Android, still less Apple's iOS. Those two systems operate 19 out of every 20 smartphones worldwide.

In truth, Samsung had been left with little alternative after three failed launches last year frustrated the developers that it needs in order to build an eco-system capable of rivalling those two. The company has to engineer the product so as to make standard services like Twitter, Facebook and Youtube available without a Tizen-specific app, according to the Wall Street Journal.

Reuters quoted Samsung as saying that the phone will have more than 1,000 apps available for download–less than one-tenth of those available for Android and iOS.

At the bottom end of the market, that may be no great problem. More important for the company is to get the product out so that it can build on it in the course of time–and, in the short term, defend its global market share. Samsung was deposed last year by Xiaomi as the largest smartphone maker in China.

Tizen is already in use in Samsung's smartwatches and cameras and, most recently, its TVs. The company ultimately intends to make it the cornerstone of its strategy for making all of its household appliances connectable to the "Internet of Things' in due course.

The question is whether, even in the world's third biggest market for smartphones, Samsung can achieve enough scale for Tizen to persuade skeptical developers that making apps for it is worth their while. At $92, the phone is almost four times as expensive as the ultra-basic Nokia 130 phone which aims at the same segment, and more than 700 million people in the target market of India live on less than $2 a day, according to research firm IDC.

The phone has a four-inch display, one front-facing camera and an ultra-power savings mode. In an effort to help sales, it's being sold with three-month subscriptions to music and Bollywood movie-streaming services, according to the WSJ.

News Editor for Europe at Fortune.com.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Starting a Business

Most People Have No Business Starting a Business. Here's What to Consider Before You Become an Entrepreneur

You need to find the right business opportunity at the right time and take the right steps to beat the odds.

Leadership

AI vs. Humanity — Why Humans Will Always Win in Content Creation

With the proliferation and integration of AI across organizations and business units, PR and marketing professionals may be tempted to lean into this new technology more than recommended.

Business News

Passengers Are Now Entitled to a Full Cash Refund for Canceled Flights, 'Significant' Delays

The U.S. Department of Transportation announced new rules for commercial passengers on Wednesday.

Growing a Business

Who You Hire Matters — Here's How to Form a Team That's Built to Last

Among the many challenges related to managing a small business, hiring a quality team of employees is one of the most important. Check out this list of tips and best practices to find the best people for your business.

Franchise

Franchising Is Not For Everyone. Explore These Lucrative Alternatives to Expand Your Business.

Not every business can be franchised, nor should it. While franchising can be the right growth vehicle for someone with an established brand and proven concept that's ripe for growth, there are other options available for business owners.

Management

7 Ways You Can Use AI to 10x Your Leadership Skills

While technology can boost individual efficiency and effectiveness, it's essential to balance their use with human intuition and creativity to avoid losing personal connection and to optimize workplace satisfaction.