Google Inc (NASDAQ:GOOGL) suffered a huge setback from Low sales with the Android One in India.
The company had partnered up with OEM to make the device with keep intention, particularly for the booming Indian smartphone market. The device had initially been thought to be the Holy Grail for affordably-priced smartphones designed to reach the market standards. It was also part of the strategy to take advantage of the wide population of Indians who do not own smartphones. By offering the Android One at low and affordable prices such as $100, the firm would be able to leverage the niche.
The company, therefore, targeted smartphone purchases over the next five years. Unfortunately shortly before the launch of the device in India, some articles about the market’s poor response to the device started to appear. A good example is an article from the Economic Times which stated that other devices from Xiaomi, Motorola and Lenovo are better than the Android One.
The articles provided negative publicity for the Android One. More than 800,000 Android One devices were shipped to India between September and the beginning of June. This number was a third of all the smartphone devices whose prices hover around $100 in the Indian market. The whole market had about 22 million smartphone units shipped in the last quarter of 2014.
Regardless, there were sights of poor sales in the Indian market. Some of the other devices on the market had already dropped their prices drastically. The changes were particularly evident on the online platforms such as Snapdeal, thus a good indicator of poor demand. Investors looking to capitalize on the Android One sales have also reportedly shied off from their plans.
Analyst have shifted the blame to the poor market response. One of the market experts said that the Indian mobile phone market responds to phone brands rather than operating systems. Similar to most markets, they look at key features such as the camera, the processing capacity, and a few other important aspects that Google Inc (NASDAQ:GOOGL) should take into consideration.