Google To Spend Rs 100 Crore On Android-One

by CXOtoday News Desk    Jul 15, 2014

google innovation

Google is reportedly spending more than Rs 100 Crore on advertising and marketing for the $100 smartphone initiative termed as Android One, according to an ET report, which is a big push by a tech company to support device-makers who are committing to its software platform. With Android One, Google is trying to create a specification set that will help the smartphone makers build cheaper standardized handsets. The advantage of this way is two-fold to the phone maker. First is that these companies get Google-certified phone recipe. This means the brand image improves as the phone now is Google approved.

According to people who are aware of the company’s plan, Android One is likely to launch in October, which is Diwali time in India and it is then that Sundar Pichai, the senior VP at Google who is in charge of Android, Chrome and Apps, is expected to visit the country. Although the company hinted at some new device launch this year at the Google I/O developer conference in June, beyond that no information was officially provided by the company.

Experts believe that it is obvious for Google to just enter with a splash, because the smartphone market has already become so competitive in India that every handset maker would want to make a special impression at their launch.

With Android One, Google is better big to reach the emerging market of the world, with an emphasis on the Indian market. India was the fastest-growing smartphone market in Asia-Pacific, growing at over 186% in the first quarter of 2014. It is banking on its popular Android experience and lower price point which will appeal to a huge user base. Google also plans to launch Android One in other emerging markets such as Indonesia as well.

It is also not known whether Google smartphone will take the online route, which is currently the road to success for many smartphone makers. Motorola, which was once bought by Google and later handed over to Lenovo, sold over one million phones in less than six months from launch, by selling it exclusively through online retailer Flipkart, making a spalshing comeback. 

According to sources, the Android One phones will be created and sold by homegrown phone makers such as Micromax, Karbonn and Spice. At the Google I/O conference Pichai said that it has been working with Micromax to create the first of such phones with a 4.5 inch screen, dual SIM slot, FM radio and expandable memory. It has now been reported that other hardware manufacturers such as Intex and Celkon have also partnered with Google for Android One. While Micromax, Karbonn and Spice will be the first to launch smartphones under the initiative, devices from companies such as Celkon and Intex will follow.