Back in mid-September Google, in collaboration with the leading Indian device brands like Micromax, Karbonn and Spice, has launched the first wave of Android One devices in India. IDC believes that Android One is crucial for Google to execute on its strategy to leverage the fast-growing Android user base to drive engagement for its increasing portfolio of essential Google services, including search, Maps, Google Now and others. A consistent user experience, or at least a vastly improved one, will greatly increase engagement and ultimately revenues.
The secret sauce of Android One rests on the reference designs that are at the core of the new products. The initial wave of devices launched are, all based on Mediatek reference designs of the MT6582 SoC chipset, while Qualcomm-based devices are expected for future releases.
Android One represents the latest iteration of Google's Next Billion strategy, a belated bear hug of the fragmented Android ecosystem. IDC expects Android One will attract significant sales and redefine the affordable smartphone segment by reshaping the mid-tier with a range of devices that feature "good enough" device specifications for a fraction of the price compared to flagship devices.
In fact, Android One will go further and effectively create a bipolar "pear-shaped" environment where the high-end will be dominated by the likes of Apple and Samsung with their iPhone and Galaxy flagship devices; and the low-end will increasingly converge around the $100 Average Selling Price (ASP) benchmark.
Despite a significant marketing spend already in evidence on Android One, IDC believes India will be a tough crucible for Google. Blocked out of China, Google has no choice but to make a large downstream investment in the Next Billion consumer segment in India. Success in this segment will greatly enhance their ability to leverage Android to drive adoption by the Next Billion of the Google consumer cloud.
