China's smartphone makers see in-house operating systems as advantage
Mainland brands begin developing their own operating systems to better compete with rivals
Beijing supports homegrown operating systems due to concerns over information security
China's smartphone makers are getting even smarter, developing their own operating systems that offer greater customisation on devices in a bid to differentiate themselves from rivals at home and abroad.
Xiaomi, the world's biggest seller of mobile phones, is a prime example. The Beijing-based firm has a self-developed operating system known as MIUI. Some analysts think the returns from its operating system and accessories unit are higher than from its core phone business.
Hangzhou-based Alibaba skipped the hardware but is now a player in smart devices. In October, the e-commerce giant launched its YunOS 3.0 operating system after moving into the field in 2011. More than 40 handset models are supported by YunOS. Alibaba said it has partnered with more than 20 companies, including Shenzhen-based Zopo.
"Almost all the Chinese mobile phone manufacturers have their own OS," said Zhao Yue, an analyst at CCID Consulting. "Though strictly speaking, these operating systems are built either on Android or Linux, just customised a bit to cater for the habits of mainland phone users."
Zhao said Chinese companies were a long way off from threatening the dominance of Google's Android system or Apple's iOS. But such innovation was necessary as customised platforms enabled these companies to add functions in fiercely competitive domestic and global markets.
Android's market share in China was 78.4 per cent in 2013, while that of iOS was 15.6 per cent, a mobile internet white paper issued by the Ministry of Industry and Information Technology said in May.
Analyst Wang Jun of Beijing-based consultancy Analysys International, said the operating system is the most important programme on a device. "OS is the link between hardware, software, and the users," said Wang. "Without it, any service, any application, won't function."
Liu Xingliang, chairman of Hongmai Software, a Beijing-based internet data analysis firm, said Chinese enterprises needed to operate on their own operating systems, otherwise "your fate is in the hands of others".
He said Apple removed several applications of software and search engine firm Qihoo 360 from the Apple Store in 2012 and 2013, giving no reasons. The apps were among the most popular in China.
Moreover, Beijing supports the development of homegrown operating systems due to concerns over information security. A home-grown Linux-based system called China Operating System was launched early this year, but met a poor reception.
Zhao said even a well-resourced player such as Alibaba faced difficulties in popularising use of its operating system, adding that it should team up with a major telecommunications operator or established hardware producer.
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Does it compute yet? China forges on towards own OS
Chinese software companies have been hoping to get into the mobile operating system (OS) market as the government looks to strengthen its network information security, Guangzhou's Time Weekly reports.
Companies have established a union for China's intelligent terminal OS, and so far this year three of which have established domestic intelligent terminal OSs, yet these have inevitably triggered queries from the industry.
The nation held its first national network security show in Beijing in November, at which time a mobile OS introduced by Yuanxin Technology Co drew widespread attention as the company claimed to have developed an independent system with intellectual property rights. The mobile OS market is currently dominated by Android, Apple's iOS, and Microsoft's Windows. Although some Chinese software enterprises have tried to introduce their own operating systems, most are based on Android and therefore do not fully possess independent intellectual property rights.
In addition to Yuanxin, two other companies in January also claimed to have developed their own mobile OSs with their own technology, though most remain skeptical.
Ni Guangnan of the Chinese Academy of Engineering and head of the OS development alliance, said Yuanxin's security problem needs to be evaluated by a third party as well as end users.
Addressing questions about the system, Yuanxin chairman Shi Wenyong said his company's OS is not based on Android, but is based on Linux's Mer, a free project previously named MeeGo and developed in 2010 jointly by Nokia and Intel.
In China, there are more than 10 companies which have been developing mobile OSs, but most of them are based on Android. These companies have done well at adapting the existing system, but as Google controls Android's intellectual property rights, these domestic OSs will be restricted and controlled in the long term, Ni said.
Ni, whose OS alliance has nearly 100 members, believes China's OS system can catch up with the current leaders, as Android was introduced two to three years after Apple but the two now hold a similar market share.
In 2010, Saipan systems accounted for 55.2% of China's smartphone OS market, followed by Android with 14.3% and iOS with 11.9%. In 2013, Android became the clear leader with a 94.6% market share.