14 DAY TRIAL // It looks like Google’s Android One project to tap into the emerging markets where smartphones adoption is still on a low level hasn’t received enough positive feedback to be considered successful.
Despite the search giant’s attempts to gain more market share in the emerging markets, customers and retailers alike don’t seem interested in Google’s Android One products.
India is the first country where Google introduced its Android One pilot project, but results after two months are discouraging. However, the fault may be on Google’s part as the search giant has decided not to sell any Android One phones through physical stores.
Three native handset makers agreed to launch Android One smartphones in India: Karbonn, Micromax and Spice. These Android One smartphones were launched in India back in September, but they were only available through three online retailers: Amazon, Flipkart and Snapdeal.
According to Indian publication The Economic Times, the fact that Google refused to sell any Android One smartphones through other channels than online attracted local brick and mortar retailers’ wrath.
The direct result is the fact that neither of the major physical retailers stocked Android One smartphones and they are less likely to do it now if Google doesn’t change something in its selling policy.
Sangeetha Mobiles MD Subhash Chandra said that “since Android One decided not to sell in physical stores during its launch, we, as part of modern trade, have decided not to stock Android One either.”
The margin offered by Google to retailers for Android One phones is lower than industry's average
Another aspect would be the fact that the margin offered by Google for these Android One smartphones is around 3-4%, which is far lower than the industry average of 9-10%.
Obviously, this would be another reason for the physical retailer not to stock the Android One devices, but that could have been avoided if Google had at least negotiated with any of the major companies like Croma, Future Group, Planet MRetail, Next Retail, BiC, Lot Mobile, Reliance Retail or Sangeetha Mobiles.
Earlier this month, at least two retail chains started to sell Android One handsets, but officials of both The MobileStore and UniverCell doubt that they will add more devices to their portfolios due to low sales.
Last but not least, PlanetM Chief Executive Officer Sanjav Karwa claims that Google should find a way bring the price of Android smartphones even lower. Currently, Android One phones sell in India for prices between Rs 5,900 ($95 / €75) and Rs 6,500 ($105 / €85) outright.
However, Karwa says that for an Android smartphone to sell very well in India, it needs to cost around Rs 2,000 ($30 / €25) or Rs 3,000 ($50 / €40).
