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Google places its bets on India as it prepares Android One launch

The company is expected to announce its budget smartphone platform for the Indian market on 16 September.

Sundar Pichai, senior vice president of Android, Chrome and Apps, speaks about the Android One phone during the Google I/O 2014 keynote presentation back in June.
Sundar Pichai, senior vice president of Android, Chrome and Apps, speaks about the Android One phone during the Google I/O 2014 keynote presentation back in June.
Image: AP Photo/Jeff Chiu

YESTERDAY, GOOGLE STARTED sending out press invites to the launch event in India for Android One, its new super-cheap smartphone.

Google is hoping to deliver a solid smartphone experience for less than $100 (€76).

Google’s strategy is to work with smartphone developers in emerging markets and to provide them with up-to-date versions of its free Android software so they can make great phones and low prices. It’s the polar opposite strategy of Apple, which is gearing up the release of the iPhone 6, which is likely to cost $700 (€530).

The market for cheap smartphones is burgeoning. In the West, smartphones are ubiquitous, but in the developing world, most people don’t have them.

It is not just Google moving in on the emerging market for budget smartphones. Mozilla is launching a $33 (€25) phone in IndiaMicrosoft has pushed down the price of its Windows phone. Xiaomi and Motorola have been launching smartphones in India too, including the Redmi 1S and Moto E costing Rs 6,999 (€87) and Rs 5,999 (€75) respectively. 

9to5Google noted that Google has already partnered with manufacturers Karbonn, Micromax and Spice for the first Android One devices. Karbonn are the manufacturers who made the A50S, the smartphone priced at only $43 (€32).

The bet here seems to be that in the future, it will feel weird to pay large sums of money for a phone. Generally, the history of computing shows that prices drop over time even as devices become ever more powerful.

Eventually, Google and its Android manufacturers seem to be hoping, people will face a choice: €530 for an iPhone or €76 for an Android that does the same thing.

screen shot 2014-09-02 at 11.19.02 am Spain is notoriously dominated by Android. Source: Business Insider

Some people think that Android phones only compete with other Android phones, and that Apple functions like a separate market. In that scenario, Apple is happy to exist as a minority brand as long as the minority it serves remains highly lucrative.

Right now, that strategy is working for Android, too. Apple remains strong in the US where a huge chunk of the market buys iPhones. But in Europe, Android is taking over. In the top 5 European countries, Apple’s share is only 7-11% of the market.

Of course, Apple’s iPhone 6 is likely to be a huge seller – so after 9 September, expect these numbers to change drastically.

Jack Dutton

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Published with permission from:

Business Insider
Business Insider is a business site with strong financial, media and tech focus.

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