Android One Report Card - Things Not Looking Bright In India's Smartphone market

Android One was launched with a lot of anticipation by Google in an attempt to broad base the OS among the masses in emerging markets. The idea was to provide an affordable package of handset plus the OS such that users get to experience stock Android. Google has recognized the issues caused by fragmentation over the past 3 years and by committing to send updates directly, it hoped to bypass the laxity and delays associated with OEMs rolling out the updates. Google launched the Android One in a market like India that is quite price sensitive. This was a test launch wherein it tied up with 3 local handset manufacturers to be able to sell handsets at very affordable prices. Google announced it would be increasing the numbers of manufacturers it would tie up in the months to come and would also launch the Android One in other countries like Bangladesh, Nepal and Sri Lanka.  

So What Has Been The Result?

However, the reception to this initiative has been rather tepid. One of the reasons has been the simultaneous introductions of very good handsets by companies like Xiaomi and Motorola. The brand image these companies boast of are superior to the local names and people have preferred to buy handsets of these brands, giving the Android One a pass. The figures are not very encouraging as the 3 local partners – Karbonn, Spice and Micromax have imported just a little over 2 lakh pieces in the full month of October which was much less than the close to the 2.5 lakh pieces they imported in just a fortnight in the month of September. Another reason maybe was also due to the limited penetration of the ecommerce platform. These phones are available only on specific portals and since not many in the country have access to the internet, they have not been able to buy the product. There is hope sales would pick up in the months of November and December as they are festival months and people generally indulge in festival shopping. There are other reports that talk of Micromax importing a lot more in anticipation and have not been able to sell as many, though the company has not responded or commented on this. Another player Karbonn thought that since supplies were affected to some extent and demand pick up is initially slow for any product, the coming months would see better results. Analysts believe that the players complaining of lack of supplies had played a bit safe and not ordered the required quantities and whatever they had were sold off. These companies had also started selling their units offline after the online initiative failed to deliver the expected results.  

Better Marketing And Communication – The Key

Experts say that these companies need to market the product better and also improve their communication about the benefits of the Android OS to first time buyers. Lack of awareness has also been cited as one of the reasons for the slow pickup in demand for the Android One.