Focus on Android One ahead of Google CEO Pichai's visit

Analysts stress its importance as market speculates on v 2.0

Ahead of Google CEO Sundar Pichai’s visit to India on December 16, the market is anticipating  that he may use the occasion to launch version 2.0 of Android One.

To a query from Deccan Herald on the new version of Android One, Google India’s official spokesperson said these are mere market speculation. “Right now we can’t comment on these developments. We are busy with our year- end activities and the visit of Sundar Pichai on December 16,” said the spokesperson.

Analysts whom Deccan Herald spoke to are unanimous that Android One’s success in India is pivotal for Google, for a variety of reasons. Android One is a platform which enforces the pure version of Android Operating System for all devices produced by partner vendors.

It was launched globally in India in September 2014, and subsequently unveiled in 19 other developing nations.

Karbonn, Micromax, and Spice were Google’s launch partners in India for Android One.  The three partners respectively brought out Karbonn Sparkle V, Micromax Canvas A1, and Spice Mi-498 Dream Uno respectively last year with retail prices ranging around Rs 6,600 ($100), but had to be content with muted response because of tough competition from China-based mobile companies.

Interacting with Deccan Herald, Counterpoint Research Director Director Neil Shah said the hardware manufacturers’ online-only marketing strategy failed to enthuse customers. “Consumers were able to get products from Xiaomi, Moto G, and Lenovo with similar specs at much lower price points and with more features,” he said.

Shah says Google has been losing control over the Google ecosystem due to the proliferation of Android-based devices, especially in high-volume emerging markets like China.

“Most of the OEMs have tried to fork the Android and replace the key GMS (Google Mobile Services) elements piece by piece with their own applications and services. Since it happened in China and the government eventually banned Google, the company doesn’t want that to happen in India,” he said.

According to Counterpoint, shipments of these first three versions totaled just 1.2 million units in India in the first year, representing 3.5 per cent of the market for devices that cost $50 to $100. At the same time, Redmi smartphones from China’s Xiaomi Corporation secured 7.5 per cent of the market.

Since vendors became annoyed with Google’s strict guidelines on sourcing hardware, the company later tweaked the pre-condition paving the way for hardware companies to source components from their own partners and adding more features that go into the phones.

Lava, a leading hardware player, launched Pixel V1 on Android One platform in July this year and recently gave it  a Marshmallow upgrade. LAVA International Vice President & Head (Products) Navin Chawla said the Pixel V1 sets the foundation for a new category of smartphones by Lava that offer a great value and experience to the consumer.

Karbonn Chairman Sudhir Hasija told Deccan Herald that the Android One is a great platform which gave birth to great products. “Its ease of use is fantastic. We have our own plans on Android One and it will be unveiled soon,” he said.

V 2.0 with 4G access?
Rumours have it that Google will come up with a second version of Android One in the sub-$100 category with more features and with 4G facility, partnering new hardware players.

Shah says that Google is a horizontal player with a business model primarily aligned at amassing volume and scale for its Android platform, more so the GMS cloud, to maintain stickiness, eyeballs, and fingers on its platform.

Rather than other brands using a custom forked Android OS in the third-largest smartphone market in the world, Google wants a new version of Android One so that it can regain a greater deal of control.

According to Amit Misra, an analyst working with Fortune 500 companies, Microsoft has come up with a plan where its mobile hardware will sync with Android OS.

“Micromax is planning to launch this mobile in the market soon. Google is worried on the fragmentation of Android OS and wants to give an Apple-like experience to its customers. Also Google is worried as hardware players are taking so much time for upgrading Android OS. Here comes the importance of Android One,” said Misra.