"Chasing Apple Watch" Samsung, Why Did They Abandon Their Own OS and Partner with Google?

Samsung-Google Wearable OS Alliance
Unified Platform Combining Tizen and WearOS
Expected First Deployment on 'Galaxy Watch4' in Second Half of Year

[Asia Economy Reporter Seulgina Cho] "Samsung Electronics has long strived to provide a smoother connection experience between Galaxy smartwatches and smartphones. The new platform can be seen as the next step toward this goal." (Janghyun Yoon, Vice President of Samsung Electronics)

Samsung Electronics has abandoned its proprietary wearable operating system (OS) that it has maintained for seven years and ultimately partnered with Google. The new unified OS, which increases execution speed and reduces power consumption, is scheduled to be installed on the ‘Galaxy Watch4’ to be released in the second half of the year. Samsung Electronics and Google have decided to open the OS to other manufacturers to expand the Android-based ecosystem to compete against Apple.

According to Samsung Electronics on the 20th, the new unified OS combines the strengths of Google's wearable-supporting ‘Wear OS’ and Samsung Electronics’ ‘Tizen’ into a single platform.

New wearable applications, including YouTube Music, will be released on the Google Play Store in the future. The new unified OS will include ‘turn-by-turn directions’ using Google Maps for navigation, health-related activity tracking features from Fitbit, acquired by Google, as well as Samsung Electronics’ existing AI voice assistant Bixby and Samsung Health functions. Google explained, "Users will be able to access more of their favorite apps on smartwatches."

The collaboration between hardware powerhouse Samsung Electronics and app ecosystem leader Google is a move to surpass Apple in the wearable market, including smartwatches. According to market research firm Counterpoint Research, as of the fourth quarter of last year, Apple’s global smartwatch market share was a whopping 40% (1st place). Samsung Electronics, ranked second, holds 10%, which is one-fourth of Apple’s share. Even combined with Fitbit (7%, 4th place), acquired by Google at the end of 2019, it falls short of half of Apple’s share. In effect, Apple has taken the lead in the smartwatch market, often called the ‘doctor on the wrist.’

Samsung Electronics and Google, who have long cooperated in the Android camp, had taken separate paths in the smartwatch field. Samsung Electronics had an underlying intention to escape OS dependency experienced in smartphones. However, this led to reduced connectivity with Galaxy smartphones and limitations in expanding content due to competition from Google and Apple OSs, ultimately forcing Samsung Electronics to choose an alliance with Google in wearables. The first products equipped with the new unified OS, the Galaxy Watch4 and Watch Active4, are expected to be unveiled at the Galaxy Unpacked event around August.

The rapid growth of the smartwatch market, which has evolved significantly due to COVID-19, is also a major background for this alliance. Market research firm Gartner forecasts that global smartwatch shipments will exceed 100 million units this year and reach 219 million units by 2024. In terms of revenue, the market is expected to grow from $21.76 billion last year to $38.33 billion in 2024. Smartwatches are no longer simple watches but are expanding their usability as healthcare devices equipped with various functions such as blood pressure, sleep, electrocardiogram (ECG), and oxygen saturation monitoring.

Samsung Electronics and Google plan to leverage the unified OS to further increase the influence of the Android camp in the rapidly growing smartwatch market. Vice President Yoon, who leads Samsung Electronics’ mobile software development team, said, "We will actively build a leading health management experience in the new platform," adding, "The unified new smartwatch platform will open a world of new possibilities for developers."

Samsung Electronics also expects to solidify the ‘Galaxy ecosystem’ against Apple by strengthening interoperability between smartphones and smartwatches. The seamless experience?connecting wireless earphones, tablets, smartwatches, and more through the smartphone as a hub?is evaluated to provide a lock-in effect that prevents customer churn for the brand. Vice President Yoon expressed hope that "developers will be able to grow the expanding Galaxy smartwatch fandom together within Samsung’s powerful smart device ecosystem and network."

Meanwhile, Samsung Electronics plans to provide at least three years of software support after product release for customers using existing Galaxy smartwatches based on the Tizen OS.