Google’s introduction of Android One in Asia can affect Samsung adversely.
This week Google Inc. (NASDAQ:GOOG) launched Android One in India in an effort to improve the quality of low end phones. Just like China, local smartphones market in India is not only strong, but getting bigger with time. However these low-end smartphones in India do not have staggering quality because of a few major software problems, which has resulted in less than satisfactory user experience. To improve the quality of these smartphones, Google will work with local software manufacturers and offer them an alternative in the form of Android One software to manufacture better performing low-end smartphones. The result will be inexpensive phones that will offer quality experience.
Google shook hands with Micromax, Karbon Mobile – low-end companies that make local smartphones. This decision poses a huge threat to Samsung, which banks heavily on the low-end smartphone market in Asia, especially in India.
Although Samsung in India has been successful in the past, but with technological advancement, it is falling behind because of its mediocre software and slow system in low end smartphones. Two of the leading Samsung low-end phones in India are powered by a version of Android that is old and outdated as compared to the company’s expensive phones – at least two versions old. As a result customers are waiting for better alternatives – Android One might just be it.
Samsung has already lost its top spot in the low-end smartphone market in China to Xiaomi. Its shipment in the second quarter dipped down by 15%. With Android One Samsung’s next worry is India.
India will not be the only country where Google Inc. will bring its Android. It will soon allow Philippines, Pakistan and Indonesian developers to use Android One to manufacture better quality smartphones for these regions. Pakistan, because of its fast growing cellular user pool, promises to be one of the countries where Android One may become a huge success.
Google is giving Samsung something to think about. If Android One becomes a hit then Samsung may have no other choice but to use it. However if it does use Android One then it will lose its uniqueness and may run the risk of becoming just another smartphone that offers Android One.
Google is not being entirely selfless by introducing Android One; it is in fact an extremely smart move by the company. Android One promises better user experience, which means it will attract more users and when that happens it will lead to more and more traffic for Google. How? With Android One, Google will automatically push users towards Google’s search and other internet services.
Android One will not only create great market for Google Inc. (NASDAQ:GOOGL), it will also push other brands to up their game and provide better quality operating systems. The operating system may create and enjoy monopoly in the market for a while, but soon it will find itself in a battle for supremacy as other brands will try to manufacture something equally good. No matter who wins this race, the winner of this entire battle will be the end user.
