Tizen Finally Launches First Smartphone: Samsung Z1 entry-level 4 inch smartphone costs 91 USD in India without subsidy

Well its about time! Samsung after countless delays and teases, finally releases the first Tizen based smartphone. Its not what we were first promised, a top-end near flagship spec smartphone. Now Tizen looks like this coulda been just another bada device (and therefore, gosh, why the 3 year wait). Yes, an entry-level smatphone of very modest specs and low unsubsidised price well below 100 US dollars.

The Tizen based Samsung Z1 went on sale today in India. It has a 4 inch touch screen and a 3mp main camera and 0.3mp res selfie cam. But ok ok, at least its not as moronic as the first Lumia devices that didn't even have the selfie cam at all haha and cost far more than this. But yes, what else does the Z1 give you? The screen resolution is modest at 800x480 pixels. The phone comes with 4GB of internal storage but the microSD cards accept 64GB more. The rear camera does have LED flash. It does have WiFi, BT and GPS. Its a dual SIM phone and it has FM radio. The battery is (of course) removable. A ho-hum specs device with nothing of a Wow factor but nothing really missing either. 

Ok. It costs 5,700 Indian Rupee (91 US dollars) unsubsidised price. I am definitely not an 'expert' on the sub 100 dollar smartphone market in India but a quick look at global market offering suggest that from the cheap-phone masters, Nokia, sorry Microsoft, we get a Lumia 435 at slightly lower about 80 USD price for which you get same specs as Z1 but differences are: camera only 2mp not 3mp, but memory is better internal memory 8GB and microSD supporting 128GB, The Lumia is not a dual SIM device (I think, doesn't seem to be by GSMArena specs summary). Obviosly Lumia runs on Windows Phone.

From Samsung's own Galaxy series the nearest rival is I think the Galaxy Ace running Android, that was released half a year ago and sells for about 6,000 INR today in India. It matches most Z1 specs but gives a 5mp main camera rather than 3mp.

So on a very cursory search, the Tizen based Z1 seems to be very 'typical' specs for that price point in today's market. Being Samsung brand, it should sell well, as the growth is all in the low-cost area and remembering for example Lumia, most devices sold were at the bottom of their price range.

THE MARKETING TRICK

But the Samsung Z1 and Tizen have a party piece. Not on the phone or on Tizen itself, but via the marketing bundle. Samsung has achieved a marketing campaign partnership with India-based cable TV provider NexGTv who have bundled a cable TV subscription with cable TV box, worth 28 US dollars, into the promotion. It gives access to 7,000 Bollywood movies plus of course typical cable TV services. That is a big deal and a huge bonus value at this price point. The Z1 also includes 3 months of free music from Hungama (one of India's biggest digital content providers) and more free content from Club Samsung. This sounds like a great offer to entice new customers to a platform where Tizen obviously will be rather barren as to games and services in its app store now at launch.

So its now out, actually being sold, finally. Tizen. The latest OS to join the Bloodbath, two years behind schedule and with a totally revised strategy from what it originally promised. But we have one device out now, from Samsung, in one market. Yes, India is the third largest smartphone market globally, thats not a bad thing but now Samsung does need to expand the reach of Tizen, more phones more countries. And the platform does need validation from other hardware makers, so hopefully by next year there will be more than just Samsung making Tizen smartphones. Can the Z1 give Tizen 1% market share by the end of this year. No. That needs more but this is a start and hopefully Sammy is serious about Tizen and gives us more phones in more markets and gives Tizen its full chance.

TIZEN CHANCES

For the tiny OS providers, Blackberry, Firefox, Windows Phone this is bad news. The world's largest tech company, largest mobile phone handset maker and largest smartphone maker now launched its own OS and a low-cost smartphone where all the growth is. Lets see how this pans out. Samsung tends to be very secretive about its phone business specifics in its quarterly releases, so we are likely not going to hear much about the early performacne of Tizen but maybe we'll get some India market stats and then of course we have to rely on the analysis by the big 3 handset analyst houses, how do they report Tizen OS market shares in the coming quarters. 1% for the year is not really possible but 1% by Christmas Quarter is perhaps the best Samsung could desire, which would make them bigger than Blackberry now and give Tizen the right to talk about being the fourth biggest OS haha... That would mean selling about 5 million smartphones in the Christmas Quarter Q4 so Samsung would need many more countries added to India to have that kind of sales levels for Tizen. But lets see if that comes true or they linger in 5th place still this time a year from now.

Now for comparison, two recent launches that are very relevant compaisons. Samsung itself launched a new OS five years ago called bada. In 12 months for its fourth Quarter Tizen had 1% market share. In 24 months for its 8th quarter, Tizen was up to 3% of all smartphones sold worldwide. That is what Samsung can do with its own OS, probably, if it is as serious about Tizen onw as it was about bada back then.

So for comparison, lets take what the world's largest handset maker and world's largest smartphone maker can do under similar conditions. Nokia while it ran on Symbian and Meego, launched on a new OS Windows Phone, the Lumia line three years ago. In the first 12 months, Lumia grew to 2% market share in its fourth Quarter, which then grew further to 3% global market share in the next year, for its 8th Quarter. That is a model for us. If Samsung is serious about Tizen, it should achieve those kinds of numbers, between 1% and 2% in the first 12 months, and about 3% after 24 months from now. If Tizenis on that path at those intervals, this is a project run reasonably well. If Tizen is below those points, then this project is in trouble. If Samsung manages to do better than those points, then it would signal a strong potential for Tizen. But lets be serious, don't expect 10% in two years haha.

The target numbers are thus 5 million Tizen smartphones sold for Q4 of 2015 and 16M for Q4 of 2016. That would mean that by the end of this year for Q4 about 5% of Samsung's total handset production would run on Tizen and at the same time in 2016, about 15% of Samsung handsets would feature Tizen as the OS.

And one last note - IF Samsung is able to convince other handset makers to join making Tizen smarphones, THEN the upscale potential is higher than these numbers...

Comments

[jj]

The good thing is, it will be capable of running Android apps.

[AndThisWillBeToo]

"Galaxy Ace running Android, that was released half a year ago and sells for about 6,000 INR today in India. It matches most Z1 specs but gives a 5mp main camera rather than 3mp."

I can't figure out a single reason to buy this phone, no matter the services bundled to it. But it may just be me.

[Tomi T Ahonen]

AndThis

Haha no real reason. But in India, a random middle class dumbphone owner will walk into a phone store, say he wants a new phone. Sales rep asks what brand, random buyer says 'Samsung' - and this is the latest that is in the budget for first-time smartphone buyers. The buyer has no idea of what is an app store and just looks at how big the screen is and how great the camera vs his current Nokia phone bought in 2013 and at 90 dollars, buys this phone. Maybe compares to a Micromax or Karbonn or Lenovo or Lumia but because Samsung's huge marketing push, Samsung brand alone will bring in the business in this price segment. This phone will easily do a million sales in India per quarter (especially with the marketing bundle) but that is not enough for Tizen, they need now more handsets and more countries.

But I agree, nothing whatsoever why to buy this phone - but remember AndThis, the price point. Put yourself into the shoes of a first-time smartphone buyer who is upgrading from a couple-of-years old featurephone and cannot possibly afford an iPhone. Look at those two strong rivals that sell in this price point among international brands. The specs are exactly at the mid-point of those two devices as is the price. This is 'just right' but yes, it has nothing compelling to it (as a phone)

Tomi Ahonen :-)

[AndThisWillBeToo]

@Tomi
My point was that Samsung's current Android offering outclasses Z1 in same price point and having better support what comes to services, accessories, apps.
Plus that Galaxy Ace is "Galaxy" that Samsung has spent billions to make a merit itself whereas Z1 is not.

Even that featurephone user you described will want Galaxy instead of Z1.

[John F.]

And if the rumors are true, soon we will have a blackberry Tizen and android pastiche

According to reuters Samsung is in talks to buy blackberry.

[tgee]

We can track the imports in zauba.com to have an idea...

[TheRedZ1ModelLooksReallyNice]

Lumia 435 Dual Sim vs Z1: www.gsmarena.com/compare.php3?idPhone1=6949&idPhone2=6894

[Tomi T Ahonen]

John F thanks. Am working on the blog about it (and Sony looking for a buyer)

TheRed - thanks, that was what I thought but didn't see it when I did quick search.

Tomi Ahonen :-)

[Tomi T Ahonen]

Hi LeeBase

I agree to a point. This is very bad for the developers, to launch the Tizen series with the low end device. I was arguing on this blog already when the first specs of the Tizen Z I think it was then called were released, that as it was well inferior to the top-end Galaxy at the time, for the launch phone, it was too weak for Tizen. Similar to how Lumia was launched with a flagship well lagging the year-old Symbian flagship from Nokia. This Z1 is far worse as a bottom-end device and Sammy would be expected to bring more expensive Tizen smartphones to the range later. Dumb strategy both for phone series launch and especially to motivate developers.

Now if this phone gets a near global release during 2015 and at least one sister phone is released also near global by Q4, its at about 1% market share for Q4. Then if those statements from Samsung that Tizen potential is all of their 665 million devices they sell per year (about 365 million of those would be phones last year) and thus not just all TVs but the intention is to get all or most of their phones also onto Tizen, if that really is the current plan at Gangnam, then there will be more than 2 Tizen phones this year and definitely half a dozen by end of next year. And that would mean 3% market share which will in that case be well better than Windows Phone. Because those carriers that have very relucantly given into Microsoft's plea of the third ecosystem would now see the far more preferred, far more open and far more carrier-friendly alternate third ecosystem and Tizen would steal those customers from Lumia. It might be only 1 in 10 or 1 in 20 Lumia total sales but that further diminishes Windows Phone market share from the modest stance under 3% where it is currently. For the most part Tizen will take customers from dumbphone migration, not from Android. And mostly Windows Phone is too small to matter in Tizen's growth. But Tizen will steal some from WP and as the carrier-preferred OS option, that is another death-nail to an already dead Windows smartphone vision.

So if only 1 or 2 Tizen phones by end of next year, you're totally right, Tizen will be nowhere. But if 6 or more Tizen phones have been launched by Q4 of next year, somewhat the levels that Lumia did then Tizen will have 3% (or more) and will definitely be bigger than Windows Phone. And Microsoft may well have shut down the Lumia unit by then (or announced its demise).

Tomi Ahonen :-)

Tomi Ahonen

[AndThisWillBeToo]

Francisco Jeronimo of IDC calls Z1 "dead on arrival"
http://twitter.com/fjeronimo/status/555349755250094082

[zlutor]

@AndThisWillBeToo: yes, the phone is nothing special but Samsung plays it wise:
- looks like other Android samsung phones - look at the buttons at the bottom!
- runs Android apps
- bundled with locally relevant package and it is not an 'abandoned child' like Nokia N9 was
- quite fair price

So, Average User might not even realize that (s)he does not buy an Android device. Especially if sales personnel are are in - and incentives are given from Samsung

[Tomi T Ahonen]

Hi AndThis & zlutor

LOL seriously AndThis, you're gonna take Francisco's forecast over mine? Why don't you go ask him where are the 10% market share for Windows Phone he promised in 2011 that the world would see in 2012. Yeah. You're really taking IDC forecasts for smartphones ahead of mine. Seriously? Did you read the article he refers to? That article in no way suggests Tizen is dead on arrival but rather the article explains why - FOR INDIA speifically its well competitively priced on a compelling marketing bundle. So Francisco then turns that article into his conclusion that is nowhere referred to in the original article - without ANY explanation why the EU expert at IDC should know better than the writer who talks about the specific India market issues. If Jeronimo at least explained WHY its dead on arrival, we could consider it as a contirbution but if he deliberately misrepresents what that article says, that is just sloppy and unprofessional behavior. Not unlike IDC often with its forecasts.

zlutor - yeah like I said, ho-hum but competitive on the phone part, bundle is good package and enormous value at that price point. This phone will get 2-3% market share easily in India but India and one phone is not enough for Tizen obviously.

Tomi Ahonen :-)

[AndThisWillBeToo]

@Tomi
At no point did I say I take his forecast over yours. I just thought people here would be interested to hear that there has already been public "it will fail" from IDC, whose accuracy you just summarized quite well.

[Tomi T Ahonen]

AndThis

haha yeah, thanks! and I don't mind that link either. IDC is doing itself no favors with comments like that.

I honestly would like to hear why Francisco thinks its dead on arrival (and did he really mean for India or for say Europe). But to tweet that and then include link that is mildly optimistic in tone, that is sloppy if not borderline unethical for an industry analyst. Its like in my Elop rants era if someone tweeted 'Elop is succeeding with Lumia' and included the link to my blog saying Elop is an idiot haha..

Tomi :-)

[zlutor]

@Tomi: what does it mean to Jolla? End of the game?

[charly]

@zlutor

Jolla is Amiga. There are still companies who make money with selling Amiga but it is not exactly a competitor for Windows. Jolla could be semi profitable if they sell 100.000 phones with a gross profit of $100 in Finland/world per year but i don't see how they can grow to 1 million.

[zlutor]

@charly: I see that but they were in "expansion phase", entered India recently (not in this price point, for sure). I do not know how this affect their plans to be 'the alternative' for Android and iOS.

About WP - well I hate it with passion, so my opinion cannot be objective related to that... :D

[charly]

Did Apple have their own headphone line? The Beats purchase is so recent and Samsung is so big that it would surprise me if Samsung wasn't making headphones eons before Apple.

[Maggan]

Apple's been making headphones for as long as they have been making iPods. So from 2001 I think. Don't know when Samsung started but I guess they' e been at it for a long time.

[charly]

A line outside a replacement part? I thought they only sold those in ear buds that also come with the ipod itself. So no $200 earwarmers