Android One from the Google, promises rich smart phone with pure out of the box android for low-cost devices. For last three years, Samsung has been a leader in distributing Android products. During last one year, there has been some disagreement between Google and Samsung on customized android experience given to users through Samsung smart phones. For some times, Google has been advising Samsung about shipping most used Google Apps with default operating system but somewhat, developers of Samsung have evolved and created various similar applications to Google and all these are shipped with customized android operating system from Samsung.
Constant patents conflicts with Apple and Samsung have landed Google to court. Google wants a pure operating system that can be used for all segment of the population. Samsung is the leader of android devices in the middle and high end smart phone segment.
It has been unable to produce good smart phone in low end smart phone segment. Indigenous companies like Micromax, Karbonn and Spice have somewhat managed to produce stylish phone with astronomical low pricing. Google is also of the opinion that Samsung is somewhat capturing entire android market segment. That is the reason why the concept of Android One comes to light. Google in conjunction with indigenous original equipment manufacturers of India has evolved a plan to produce smart phones within price range of 6000 bucks.
Hardware specifications of these phones are somewhat nearer to mid segment of smart phones and all these are secured by Google. Google indirectly enters into hardware segment and tries to consolidate regional market henceforth. Android One becomes a reference platform where device makers can follow some specific hardware requirements to prepare and produce low cost smart phones.
Through Android One project, Google is expecting to acquire 80 million Indian smart phone markets in the coming year. Most of the middle income group want a second smart phone which should be affordable considering low price bracket. Google is considering India as an emerging market and is testing the response from people and then it will go to other South Asian and Middle East countries.
It is expected that market share of Android would hit a plateau globally due to spread of Android in most popular hardware vendors. Google knows this and wants to tap into the most unused and low cost smart phone segment by introducing Android One at an unbelievable pricing. In order to make these phones last long, Google has set minimum hardware and software standards for three original equipment manufacturers that produce low cost smart phones of Android One. It is like Android One umbrella where OEMs tend to oblige to maximum hardware specifications.
Future of Android:
It is expected that the smart phone market segment is set to double its growth to more than 80 million devices this year. For some time, Google is weary of third party OEMs not providing on time updates of Android. For this many a time, many android devices are affected by malwares which makes devices slower and provide ample opportunities for evasion of privacy of individuals. Android provides pure android experience irrespective of hardware manufactures and it provides a uniform user experience as this entire phone can be automatically set to update to Google’s latest software and updates to be better protected from malwares.
From June this year, internet major Google has been working with prominent Indian smart phone careers to develop smart phone in the low cost segment with better hardware facilities. Google is likewise trying to facilitate them to import hardware from US and other destinations in order to get cheaper hardware pricings. These smart phones provide users with better browsing facilities coupled with gaming which mid to high range smart phones running android are already providing.
All these create a cut throat competition among different original equipment manufacturers to provide better hardware experience than they already were providing. Google is proposing to spend more than 100 core bucks in spreading messages of android one to prospective customers through various advertising platforms.
It is a super success for consumers as they keep getting better and cheaper phones. Google gets exclusive control over hardware and software in addition to its applications stores and future software updates. Hand set makers by running Google brand name they receive reliability and good margins from sales. Google is planning with this project for last one year and in last February one of leading indigenous vendor approached them and deals finalized.
Android One provides low cost smart phones for emerging market in India. China and Western markets are facing saturation and it can hurt Google’s continuous growth. Google closely seen changing market dynamics of India’s handset market, where indigenous smart phones vendors have pushed multinational companies such as Nokia and within a short time it is of high probability they can topple the current market leader Samsung.
Competitors of Android:
Android has nearly 85% of smart phone market shares. With the introduction of Android One, its market share is definitely touching scaling heights. Google is also weary of the recent release of Firefox’s Mozilla which produces 2000 bucks smart phones, the lowest in India so far. It also faces competitions from Samsung’s Tizen and Jolla’s Sailfish mobile operating-system.
Samsung is preparing for this war with Google by leaning into low-cost smart phone markets through its Tizen operating-system. It is not sure how people will respond to this but definitely good times ahead for consumers in coming months. When Google was a newbie in smart phone market, in order to snatch the best possible market share from market leaders such as Symbian from Nokia, it was giving away the code for free to most hardware developers.
The implication of a smarter operating system has been delivered and it is lucidly clear that Google has now almost 85% of market shares in all smart phone market. After successful establishment, in market, now, it is time to maximize revenue generations. In the last two years, streams of mobile manufacturers from China and India have been utilizing many possibilities from Android Open Source Project (AOSP) by delivering customized version of Android with sharp drop prices.
That is why Google releases Android One, its own customized android, and it wants to tap into the low end market segment and try to stop the flow of new hardware manufacturers from India and China. It is cheaper Nexus phone from Google. It always wants to stabilize low-end smart phone market segment. It seems many new players are taking away a chunk of profits from Google and it wants to stem the flow of such manufacturers by taking entire control of the market through its own customizable android version. It seems Android One is the best thing possible customized android phone and it gives best Google experience.
It uses stunning security features built-in Android Device Manager to erase your data remotely when your phone is lost or stolen. It is offering better hardware specifications than indigenous companies from India and China. Google is working with some reliable Indian manufacturers and providing them technical advances and helping them out in supply chain management of hardware buying. Google is offering these handsets through some of the better known e-commerce sites of India. It is a crazy market strategy to grasp existing market space in order to take full advantage of revenue potential.
Mobile Application Distribution Agreement:
In the past, manufacturers of low end smart phone markets have never been concerned about a complex operating system. Android gives them a proper opportunity to invade into the complex market of smart phone and slowly it becomes apparent that it is the most profitable market niche which most high end established market players constantly ignored. There are numerous established Android forks, including Xiaomi’ and Meizu, these are made of android but Google has no control over it.
Google is just not getting any revenue generations from its established cloud services. All these send alarming signal to Google and it started to create Android One which seems brilliant operating system in making and slowly it wants to replace market share of such Indian and Chinese companies. Google coordinates with some established market players from India and by proper farsightedness; it is now trying to reach the next billion numbers in smart phone sales easily. Google will control all over-the-air (OTA) updates directly from its server thus supports cost away from manufacturers.
Due to cut-throat market competitiveness, the small revenue which vendors have been generating can be maximized to the highest possible revenue generation for them due to the advent of such small measures driven by Google. In return Google exhibits pure and consistent android experience and it opens all of its cloud services to users which are a major source of revenue generation for Google. In the short-term, the revenue generation is definitely going to be on the lower side but in the long term, billion of people using consistently pure cloud services from Google can benefit it immensely.
Google is deliberately weakening market share of customized android from other manufacturers in order to bring back use of its own cloud services. Android One is a closed source operating system, and it is available to partners who sign ‘Mobile Application Distribution Agreement’ with Google. It is evident that in the coming days and weeks. Google will not close Android Open Source operating system. But in the coming days it will add more development to its closed source operating system known as Android One.
Android as an open source project?
In the coming weeks, Google will ensure to update term and conditions of Android Open Source Project (AOSP) by making compulsory for third party manufacturers to install all Google cloud services on customized android devices. Google is just trying to control AOSP by implementing strict instructions to manufacturers to install utmost 20 Google cloud services on customized Android ROM. It wants manufacturers to install icons of those applications on the home screen and prominent display of Google search in order to control entire search mechanisms of Android. Revenue generation of Google comes mostly from, its cloud services and search engines. Google is also wanting there should be some restrictions on customized android devices of different hardware manufacturers so that on the air updates of android can be easier and done within minutes.
Security of Android worries in Google and it is trying hard to create an understanding among different manufacturers to develop more consistency in software experience in different customizable Android stuffs. Google is tightening the screws on Android Open Source Project (AOSP) which has million active devices and constantly on the rise. There are no additional smarter and viable alternatives for users for the time being. What is best is that Google is moderating these agreements from partner to partner and is willing to change the terms and conditions in accordance with proper consultations which can be win-win situation for manufacturers and Google.
It is all about generating and grasping a larger share of the pie among different segmentation of smart phone markets. Google is advising its partners to utilize its bunch of applications and neither denying them to install or promote their own applications. It is advising them not to omit its own set of applications. What is worse that the user can delete or uninstall third party application easy but it is not possible to easily delete and uninstall applications from Google?
Anti fragmentation agreement and Google web viewer component:
Android opens up source project which means anyone can use this software. Firms like Alibaba and Amazon have used android without a deal with Google. It is legal, but they cannot install Google Play Services on customized android smart phones. Without Google support, it is almost difficult to make headway with consumers. That is why both Amazon and Alibaba have failed to capture a large chunk of market share of Android. Successful android device manufacturers like Samsung, Lenovo signed a contract known as the Mobile Application Distribution Agreement (MADA) which empowers them to install Google Play Store application on android devices. Google Play Store is an ecosystem of all application which is monitored by Google and provides additional android experiences through different applications and services.
Recently, Google updates its terms and service agreement with original equipment manufacturers (OEMs) by compelling companies to sign ‘anti-fragmentation’ agreements that bars manufacturers to release a device powered by a version that is not synonymous with version distributed by Google. Most of revenue generation in Google come from its services. Prime motive behind making android open source is to help people to use more and more Google services.
Google has been pretty straightforward in its approach. Few days back it realized some of the original equipment manufacturers (OEMs) have started shipping customized android devices, by placing their own applications similar set for Google applications. Google instructed hardware manufacturers to place a Google search at the top of the home screen as well as space for important Google applications at home screen.
Google wants its most favored applications such as Gmail and YouTube should be placed on the home screen of the android. From time to time Google is changing its terms and conditions of android with third party device manufacturers. Few months back Google added one clause of MADA contracts that says any web page launched within an application must be rendered through “Google Web view component”. It is open-source technology and analysts are not sure whether this technology is giving business advantages to Google or not. It is not bad to protect own brands and monetize from already established operating system which has nearly 85% of market shares.
Open source android vs android one:
Why Google is deliberately weakening open source android and hoping for a greater share of android one in future. There are many discrete components attached with it. The price is what we have discussed above relates to mass monetization from its already established operating system. Second is all about seamless updates of android, which is not so much possible due to different hardware vendors using unique custom ROM of android versions.
They are delivering patches and updates slowly and also it on different months in different time zones. Earlier, Microsoft and Apple have raised this issue of an updated operating system which does not exist for all customized android from different hardware vendors. Thirdly, Android is not a great success story for all hardware manufacturers. Samsung is the most beneficial from open source android project. Though, it can be said that one of the other side Samsung also adds popularity to android.
It has already established a market with good after sales service as well as brilliant supply chain management. Samsung is renowned for its superior support as well as gleaming hardware accessories. In recent financial calculation Samsung Inc is fast losing its benefits due to the advent of android one as well as the emergence of Indian manufacturers who are supplying a high quality product with sufficient capable hardware at an affordable pricing.
In international spheres, demand for smart phone is on the decline and Google foresees android future in immediate time and for this it releases close source android known as android one to create a competition among open source android devices. It is a win-win situation for Google as competition among different variants of android will compel hardware manufacturers to create cheaper final products to consumers.
It is the home grown competition which will make a better competitive environment among different hardware vendors. In earlier times, it is perceived that low cost smart phones have a bad operating system and response time is pretty slow to deal with, for this middle income group persons compelled to buy middle level smart phones.
Higher and smart phones are high on price and they do not reach to comfortable spending of middle income groups. For the first time, Google enters into higher quality low cost smart phone segment. Samsung Inc. is the leader of middle level and high end level android smart phone market segment. It considerably ignored higher quality low cost smart phone market segment.
Android are less than free business models:
In the meanwhile, indigenous hardware vendors have shown significant improvement of market share by introducing efficient smart phones. India is the third largest smart phone market. It has potential to grow further due to rise of economy and accumulation of higher money in the hands of people. People have now more money to save. Google creates a partnership with three growing Indian brand to enter into higher quality low cost smart phone market segment.
For gain of Google, these android one products would increase access of Google to hardware manufacturing and provide users with seamless integration of Google services. It is a win-win situation for Google where it wants to enter into the smart phone market and sends its close source operating system which it considers as the future of all mobile operating system. Analysts feel potential for Google to earn more from Android one phone is on the higher side than android phones from other hardware manufacturers.
It provides room for lesser customization and for the first time Google will have absolute control upon hardware of manufactures to provide a safer and smart mobile operating system. With the advent of such operating system, Google feels sooner or later, these spaces can be filled up by such new entrants and then such players can jump to the next segment to challenge the viability and affordability of android operating system. Android is less than the free business model.
It is free but from time to time, there are provisions for hardware manufacturers to obey certain rules and guidelines from Google. On the other hand Firefox OS (Firefox operating system) is completely free to use and it is from Mozilla which is famous for its dedication to open source technologies. Firefox OS does not restrict itself to any proprietary applications as it allows every application be it local or global to install on it. It has built-in ‘Firefox Marketplace’ which does not provide difficult rules and regulations to users at all.
Overall the phones which are made from this operating system are cheaper and in future will become a leader competitor to high value low cost smart phone from android one of Google. It is a management rule, to be always active to be proficient with current market segment irrespective of market values and competitive limits. Google has sensed the emerging competition from different operating system players such as Firefox OS, Tizen from Samsung Inc and so on.
Google sensed the opportunities as it knows it will take time for new players to compel users to buy their products. Those products are still untested and predictions of these products are always difficult to achieve. It is a chance for Google to maximize its economic castle in order to create more scope for monetization and spreading of android. People perceive android as the most secure and fastest mobile operating system ever to be done in the annals of human history.
Apple of east:
Android one senses the opportunity and marched towards creating high value low cost smart phone for users in order to be given the best affordable solutions ever. I wonder at any point of time big players will face stiff competitions from other market followers. It is very difficult to guess but surprisingly so fat no one bigger player in technology has ever faced such stiff market competition. For years, Microsoft is the only creator of desktop and laptop operating system.
Now, android from Google is making waves having consolidating entire smart phone market segment. Still, there are stiff competitors from open source android device makers such as Xiaomi. It is a China based smart phone Manufacturer Company which uses newer supply chain management along with a complete customizable android platform. It customized open source android and makes it nearer to Apple phone.
Xiaomi is known as ‘Apple of East’. On 2013, Google lost one of its prominent developers to an unknown Chinese company known as Xiaomi. It is a four and half year old company and it has almost 2000 employees and produces lesser number of smart phones. It relies on giving maximum hardware at the lowest possible price bracket. It transcends all barriers of hardware by providing stupendous hardware specification in some astronomical price bracket.
Hardware specifications of entry level of these phones are nearer to mid level segment of leading hardware manufacturers. It is a small company and acquires a niche market segment without prying eyes of bigger marketing giants of smart phone makers. In the initial stages, it acquires market segment of China, Taiwan and Hong Kong. Despite all odds, it manages to sell well over 7 million devices in 2012. It proficiency in hardware which it offers to the consumer at a superlative price bracket which is very much affordable to pockets of users.
It is a young company and growth creates an unfavorable atmosphere of already established handset manufacturers. Google benefits from its cloud based applications but many third party device manufacturers like Samsung and Xiaomi have consistently been providing other similar options to users and thus making much anticipated revenue losses to Google. Samsung provides huge drop box storages and Xiaomi provides its own version of cloud storage.
It stops users to reach other Google cloud services. Xiaomi sells high-end devices at rock bottom prices. It enters into the Indian market through online retailers. Its mobiles are not located in offline shops. Thus it targets educated and internet-driven masses of India. India is the fourth country which it enters.
Do away pricing models:
It has been building it’s after sales services at various bigger cities thus removing the tag of a foreign company having no after sales service. Xiaomi does not enter into the bottom of the market place, but it chooses to reach to online savvy internet customer and provides high price value. It seems to most of the customers Xiaomi is providing them handsets without much profits. Most of China and India markets are preoccupied with existing device manufacturers and they have been placed at a comfortable market position.
Xiaomi prefers students and geeks who are mostly tech savvy and try to engage them with its smart phone market through only online sales. The commonalities between students and geeks are they are internet savvy and they prefer to buy products which satisfy mostly price for their money. It is positioned as an online brand offering top smart phones at affordable prices. Due to competitive pricing and razor thin profit margins, it is still selling the same model for longer times than its competitors. Users are confronted with vast specifications of stylish phones which offer stupendous offerings at a do away pricing models.
All these pose serious challenges to Google and android and for this reason it decides to jump into the market to moderate low-end smart phone market segment. What worries Google further is that Xiaomi is offering the product at low cost and try to generate the Google service model in order to maximize profits in the long run. It creates an extreme customized android model known as ‘MIUI’ which looks similar to the Apple operating system than android.
People love to use this phone as it looks like an apple phone. Apple phones are costlier but geeks and students love to use it as an alias instead of Apple. They are implementing the same Google principle of getting benefits constantly by users from internet usages. They are offering users to use different services and from advertisement generated from these services they are getting back constant profits continuously.
For the first time, Google is now being challenged through its own mode of internet profitability practices. All these are happening due to introduction of android by Google as an open source operating platform for mobiles for completely free of cost. That is why Google has begun to create an android one the closed source operating system in order to control android market.
In the future for sure Google will develop it bigger than straight source android operating system being used by third party hardware vendors. Xiaomi replaces traditional android applications and give a whole list of newly updated application from time to time to users. Unlike other custom android models, Xiaomi updates its operating system weekly and gives a secure and fully customization android experience to users.