Google (GOOGL) introduced its Android One family of smartphones starting at only $105. The new phones are manufactured by overseas manufacturing partners.
At Google’s I/O earlier this year, the company revealed the Android One program, which is meant to expand the reach of smartphones to as many users as possible (“the next 5 billion” as termed by Google). Besides benefiting from the regular features of a smartphone, users will receive updates directly from Google.
Project Android One
Android One is an initiative to make high-quality budget smartphones available to as many people as possible in developing economies.
Therefore, it is principally for people who could only afford phones capable of running older versions of Android, which naturally don’t include the latest Google features.
The new smartphones will tackle the problem on three fronts – with an economical hardware capable of running the most up-to-date software, with software updates directly from Google and with subsidies from network providers (such as Airtel in India) that will allow users to download around 200 MB worth of apps per month from Google Play for free.
Features
The new phones have bigger screens, expandable storage, slots for two SIM cards, replaceable battery, high quality front and rear-facing cameras and built-in FM radio.
The phones will also support seven regional languages and even promote apps in those languages.
Competitors
Newer platforms like Firefox and Tizen may emerge as competitors to Google's Android One. Recently, Firefox (in association with Spice and Intex) launched two new budget smartphones targeted at users wishing to upgrade from feature phones to smartphones.
Facebook (FB) has also been working with telecom providers and hardware manufacturers to develop mobile technology that is more cost-effective to use in emerging nations.
Apple (AAPL) is a premium player and has traditionally kept itself limited to the high end segment. Microsoft (MSFT) on the other hand is more of a software company with a hardware business that is intended to supplement and support its software strategy. Both these companies are therefore not interested in this segment of the market.
Looking Forward
According to Google, the Android One phones are now available in the Indian market. It plans to expand to Indonesia, the Philippines and other parts of South Asia by the end of the year. Google hopes to manufacture more high-quality, budget devices with various screen sizes, colors, hardware configurations and customized software experiences.
HTC, Asus, Acer, Panasonic and Lenovo will also be joining the program to make Android One handsets.
Eventually, Android One is expected to enter the tablet markets also.
Google currently has a Zacks Rank #3 (Hold).
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