India may be tough market for Google's Android One, says IDC

Google's ambitious move to address the fragmented Android ecosystem with its AnrdoidOne devices will help in redefining the affordable smartphone segment, but the domestic market will be a tough call for the California-based technology giant, feels research firm IDC.

In September, Google launched its Android One range of devices in partnership with home-grown handset makers Micromax, Karbonn and Spice and mobile operators like Airtel and Reliance. The smartphones are priced starting Rs 6,399.

"Despite 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," the research firm said.

India is the first country where Google's Android One devices have been launched. Roll out across other markets like Indonesia, Philippines, Pakistan, Bangladesh, Nepal and Sri Lanka will follow in coming months.

Success in this segment will greatly enhance the company's ability to leverage Android to drive adoption by the Next Billion of the Google consumer cloud, IDC added.

"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," the research firm said.

A consistent user experience, or at least a vastly improved one, will greatly increase engagement and ultimately revenues, IDC added.

The research firm said it 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.

It added that 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 US $100 Average Selling Price (ASP) benchmark.