Rumor: Qihoo 360 to Launch Android-Based Mobile OS
Tencent Tech, 6/14/12
Zhang Lei, CEO of Tapas, the Android-based mobile OS developer backed by Chinese incubator Innovation Works, recently revealed that Chinese online security software developer Qihoo 360 (NYSE: QIHU) is preparing for the roll-out of its new Android mobile OS, due for release as early as Q3 2012.
According to an industry source, Qihoo 360's mobile division underwent a rapid expansion last year; to date, Tapas has lost more than 10 personnel to the operation. Qihoo 360 reportedly offers a very attractive salary package to prospective employees, with double or triple that of salaries elsewhere and options included.
Zhang Lei has disclosed that Qihoo 360 began preparations for its Android mobile OS at the end of last year and approached Tapas in the hopes of joining with the mobile OS developer in competition against Beijing-based mobile application and Android ROM developer Xiaomi Technology's mobile operating system product, MIUI, as well as mobile operating systems developed by internet companies Baidu (Nasdaq: BIDU), Shanda Interactive, and Alibaba, among others. Tapas rejected the offer.
Zhang explained that Tapas already derives a sizable pre-installation volume and revenue share from its own mobile OS, but that the company's efforts are focused primarily on key applications such as Tapas Desktop, Android Optimization Master, Tapas Contacts, and Tapas Alarm Clock, whereas the "Tapas" mobile OS and ROM serve more as channels for the applications. Tapas was therefore uninterested in getting into competition with China's internet giants.
Zhang Lei maintained that in the future, competition between mobile OS developers will likely evolve in the direction of collaboration and pooled resources and channels; Zhang thus worried that Qihoo 360's control of the entire industry through its handset, binding the phone to 360's Mobile Safe security program and other 360 applications, will become an obstacle for other independent applications. Zhang stated, "Not only small and medium-sized developers, but also Tencent, Baidu, and other large companies will face added pressure."
Qihoo CEO Zhou Hongyi claimed not to be aware of the new development and said he would need to verify with the company's relevant business divisions. Qihoo 360 PR has not commented on the news.
Editor's Note: For more information on this topic, please see "Qihoo 360 Debuts Self-Branded Smartphone," MD 6/12/12 issue.
Keywords: wireless Zhang Lei Zhou Hongyi mobile OS mobile application Qihoo 360 Tapas QIHU MIUI pre-installed
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