Korean firms urged to participate in Google, Apple ecosystems

By Baek Byung-yeul

Korean tech firms should take part in corporate ecosystems set up by Google and Apple to survive in increasingly competitive market conditions because it was too late for the firms to build their own ecosystems, a domestic research institute said Sunday.

Apple and Google have been leading the smartphone era during the past decade with their mobile operating systems iOS and Android.

As the long-soaring smartphone business is showing signals that it might slow, the two firms have come up with new business plans.

At this year's Google I/O in May, an annual event for creators of Google-compatible products, Google showed its full devotion to improving artificial intelligence (AI) technology.

During the conference, the firm wowed the world with its new AI software Duplex, which speaks like a person and uses realistic interjections such as “um” or “mm-hmm.”

The company also rebranded Google Research as Google AI, showing its full dedication towards improving AI technology.

According to a report from LG Economic Research Institute, Google is expected to bring huge changes to the industry because its Duplex AI assistant can be applied to various industrial sectors.

Apple is also trying to intensifying its mobile operating system (OS) ecosystem. During a series of developer conferences this year, Apple has emphasized it will beef up its customer retention strategy to encourage its consumers to keep purchasing Apple devices.

It is also expanding its reach into the healthcare sector with its health and fitness tracking apps via Apple Watch.

While the tech industry is at an inflection point, the report concluded that Korean firms were at a very critical moment as “tech firms not only Apple and Google but also others such as Amazon and Chinese firms were expanding their business portfolios in preparation for the post-mobile era.”

“To respond to the changing business plan of those leading companies, it might be possible for Korean firms to build up their own ecosystem or develop new innovating technology,” Lee Seung-hoon, a researcher at the LG Economic Research Institute, said.

“Practically speaking, however, it will be very difficult for them to solely respond to the technologies and the ecosystems developed by Google and Apple.”

Speaking of a survival plan of the Korean firms, Lee advised them to become fast followers and technology innovators at the same time.

“The domestic firms are required to take part in the new ecosystems that Google and Apple are creating quickly as soon as possible to strengthen their positions,” Lee said.

“In the meantime, they are also required to keep conducting studies on emerging technologies such as AI and self-driving to seek business opportunities.”