Google Inc (NASDAQ:GOOGL) has set out on a strategy to expand its customer base by unleashing Android that targets emerging markets. In its new approach, Google Inc is looking at making products that are pocket friendly, but that can enable users to get access to its related services such as searches, emailing, storage, video sharing, and so on.
Today Google Inc (NASDAQ:GOOGL) is launching Android One handset in New Delhi, India, as part of a move that’s turned into a personal project for Sundar Pichai, a senior vice president at Google. The smartphone is the first of a series of low cost gadgets that Google Inc will be launching in order to capture the multi-billion Indian market.
While many established companies are focusing on the high end market that consists of users who pay huge sums for gadgets, Google Inc (NASDAQ:GOOGL) has seen the need to produce devices targeting individuals who can only afford less for such gadgets. Even though the margin is low in such sales, the high number of possible buyers makes for the effort. Plus Google Inc has several other services that it offers apart from just manufacturing devices.
According to a forecast by GSMA, the mobile-industry trade body, smartphone connections will reach 6 billion globally by 2020 from the current 2 billion, with four-fifths representing the emerging markets. With such projections, if Google Inc (NASDAQ:GOOGL) focuses on capturing the biggest chunk of the market, it will be difficult to supplant the giant from its dominance.
Currently, Google Inc’s Android operating system runs on more than 70% of smartphones globally.
India presents a perfect launching ground for Android One since many people in the country are dropping low end feature phones for smartphones. However, high end phones like iPhone 6 are out of the price range for many.
After India, Google will be looking to other emerging markets to deliver affordable smartphones in a customized Android OS.
This article has been written by Victor Ochieng.