New Entrants into Mobile Operating Systems Space

This is interesting time in dynamic mobile space. Old incumbent platforms are dying (Blackberry, Symbian, webOS) because the market cannot sustain the fragmentation and but new platforms are emerging.

• August 1, I wrote blog article that Alibaba is releasing own mobile operating system. September 10 the company announced localization in Traditional Chinese and English
• End of August I wrote another article that Korean government endorsed its OEMs to create own mobile operating system, considering Samsung already had own semi-successful OS named BADA
• In a recent interview with The Economic Observer, HTC co-founder and chairwoman Cher Wang said that it is considering purchase of own operating system.

Why all major phone makers suddenly considering building or buying own operating system? Perhaps because free Android is no longer free. Microsoft is charging between $5 and $15 per phone patent royalties, some of which exceed licence fees for Windows Phone 7.

New mobile platform entrant should be aware about the three major problems:

• Gaining market share. Ask yourself, why would you buy something other than iPhone or Android phone? I cannot come up with one reason.
• Developers interest. There are not enough developers to cover half a dozen mobile operating systems and make money the same time. Developers make money on the scale of downloads and the scale decreases with the increase of the platforms. Number and quality of apps are the key to growing market share.
• Monetization. will the platform make money? If not, I am not sure incremental cost of building and supporting own operating system is lower than licensing Windows Phone or paying royalties for Android.