Prices of smartphones could come down to $100.
By Dileep Thekkethil
BANGALORE: The new Android One project of Google, flagged off in India targeting first time smartphone users, will face tough competition to make a cut in the market, says the US research and analysis firm International Data Corporation (IDC).
According to the report of IDC, “despite significant marketing spend already in evidence on Android One, IDC believes India will be a tough crucible for Google. Blocked out of China, Google has no choice but to make a large downstream investment in the next billion consumer segment in India.”
Android One was launched by the Head of Android, Sundar Pichai, in India on September as a flagship project of Google, with plans of later expanding to developing countries like Brazil, Nepal, Indonesia, and the Philippines.
Google had teamed up with Micromax, Karbon and Spice, the three Indian smartphone manufacturers to launch Android-based smartphones in the budget segment, aiming to attract people buying their first smartphone.
The report added that “IDC believes that Android One is crucial for Google to execute on its strategy to leverage the fast-growing Android user base to drive engagement for its increasing portfolio of essential Google services, including search, Maps, Google Now and others.”
Android One smartphones, priced as low as Rs. 6,399 ($104), runs the latest Android OS directly from the warehouse of Google and without any modifications done by the manufacturers. This allows Android One phones to receive regular OS and security updates from Google, without having to wait for the version of the manufacturers. Google provides every manufacturer a touchstone design, with details about hardware specification of the Android One phone. The manufacturers have to just replicate the same while manufacturing the device.
IDC said Android One has potential enough to make a sea-change in the sales of affordable smartphones in India. Smartphones with good hardware specification, reaching the market at an affordable price can redefine the mid-level range of smartphones in India.
The US research firm also opined that Android One has the ability of becoming the flagship device of the low-end specification like what iPhone and Galaxy devices is for the high end. They also added that if the Android One project becomes a success the average selling price of the low-end smartphones in India will come down to $100.
During the launch event of Android One, Google had unveiled three smartphones, one each from the three vendors; Spice Dream UNO Mi-498, Karbonn Sparkle V and Micromax Canvas A1, respectively.