The tech giant, Google (GOOG, Financial), just launched the the Android One smartphone on Monday through the partnership with Micromax (MICRO, Financial), Karbonn and Spice in India. Soon after the launch there are forecast on the sales of Android One mobiles in the Indian terrain. And the figures being projected look pretty impressive given the price tag being affordable by the growing population in India. Let’s take a look at what is being expected with regard to the sales of this smartphone in India, and how Google can grow its business in India.
What is Google expecting from the launch?
With Android One, Google aims to win customers in the world’s fastest-growing smartphone market with low prices and better quality of software. Currently, there are several smartphones in circulation in India which are offering customized versions of the Android operating system.
PWC India Leader (Telecom) Mohammad Chowdhury puts forth a statement quoting that the festive season in India does see an uptick in handset sales and the same can be expected in the pursuant months. He added that competition is mainly fierce in the low and middle priced smartphone segments.
With Android One, Google aims to improve the quality of hardware and software by giving handset makers a frame of reference. As the eventual software upgrades in the smartphone would come directly from Google, it gives the company better control of the operating system and ensures users getting a consistent service. Thus, it could give Google an ace up its sleeve as customers would be happier with the original version of Android One instead of the customized version currently selling in the market.
Android One offers Google tighter control over the Google OS which means standardised UX. Support for seven regional languages is going to be a solid plus over competitors as it would aid consumers use the vernacular language for the apps loaded on the mobile set and is likely to help in promotion of apps in regional language.
With Google taking on board much of the design process, and working with suppliers to provide a steady stream of common parts, this would reduce the bill of materials and initial cost to handset manufacturers using the Android One platform. And by creating the hardware fork of Android suitable for low-cost handsets, Google is fostering relationships with the low-cost manufacturers where turnover is more important than large margins.
What are the sales projections?
Gartner anticipates that an increasing number of manufacturers would realign their portfolios to focus on the low-cost smartphone sector. This can also mean increased competition for the Google launch. Sales of high-end smartphones will gradually slow down and increasing sales of low to mid-priced smartphones in high-growth emerging markets is expected to shift the product mix to low-end devices. So, Google’s smartphone should be like a golden catch for the Indian buyers as predicted by the analysts.
MediaTek – making the system-on-chip (SoC) which is based on quad ARM Cortex A7 processor for Google – said that seeing the initial response in the market to Android one smartphones it might be concluded that as many as two million handsets could be sold this year in the second largest smartphone market, India.
The Taiwan-headquartered company has a lot of hopes hooked on to this launch of Google and MediaTek’s vice president, Mohit Bhushan, shared – “We expect 1.5 to 2 million Android One handsets to be sold this year in India.” When questioned on the impact of Android One on the smartphone market, Bhushan said, “In the short term, there can be disruptions. But, this will eventually lead to handset makers not part of Android One to invest on innovating the mobile experience.”
Companies would soon realise that this operating system from Google gives users an unmatched device experience at affordable prices and for them to match it, they will have to follow suit and tie-up with Google for the Android One OS.
Last word
In my previous article I had spoken that the real success story of Google lies in the actual sales it can pitch for the Android One smartphone that has been released in the market. Projections give the initial idea that this smartphone is bound to be a hit in the emerging markets and especially in India that pioneers its launch. But we still need to sit tight and find out if the actual sales touches the forecast or even crosses the stated figure in the next few months. Let’s stay tuned!
