Google looks to squeeze Apple in emerging markets with new Android One program
Apple's aging iPhone 4s remains popular among consumers in emerging markets looking to move up from entry-level devices, a positioning that Google is preparing to challenge with a new series of Android handsets that combine stock Android software with low-cost hardware.
Dubbed "Android One," the initiative will see Google work directly with local electronics firms to develop low-cost hardware designed for the unique needs of each market. Manufacturers can take advantage of hardware reference designs for faster time-to-market and lower development costs, while the inclusion of stock Android will help to alleviate the outdated software that plagues Google's platform in low-end devices.
India will be Android One's first market, where three companies will be launching devices under the new program this fall. Google executive Sundar Pichai showed off one such device during Google's I/O keynote address earlier Wednesday, a 4.5-inch handset with dual SIM card slots, a removable SD card, and an FM radio that is said to retail for less than $100.
"These are high-quality, affordable smartphones," Pichai said.
India is one of a number of emerging markets where the nearly three-year-old iPhone 4s, which sells for $450 before discounts and subsidies, continues to be a major sales driver for Apple. The handset is thought to have been responsible for as much as 25 percent of Apple's iPhone sales in the March quarter, bringing in some 10 million new users to Apple's ecosystem.
The iPhone 4s may not be Apple's only play in emerging markets soon, however. Many industry watchers believe that the plastic-backed iPhone 5c -- which has already been brought to India, Brazil, China, and others in a lower-cost 8-gigabyte variant -- will become the company's new low-end option following the introduction of the next-generation iPhone 6.
Dubbed "Android One," the initiative will see Google work directly with local electronics firms to develop low-cost hardware designed for the unique needs of each market. Manufacturers can take advantage of hardware reference designs for faster time-to-market and lower development costs, while the inclusion of stock Android will help to alleviate the outdated software that plagues Google's platform in low-end devices.
India will be Android One's first market, where three companies will be launching devices under the new program this fall. Google executive Sundar Pichai showed off one such device during Google's I/O keynote address earlier Wednesday, a 4.5-inch handset with dual SIM card slots, a removable SD card, and an FM radio that is said to retail for less than $100.
"These are high-quality, affordable smartphones," Pichai said.
India is one of a number of emerging markets where the nearly three-year-old iPhone 4s, which sells for $450 before discounts and subsidies, continues to be a major sales driver for Apple. The handset is thought to have been responsible for as much as 25 percent of Apple's iPhone sales in the March quarter, bringing in some 10 million new users to Apple's ecosystem.
The iPhone 4s may not be Apple's only play in emerging markets soon, however. Many industry watchers believe that the plastic-backed iPhone 5c -- which has already been brought to India, Brazil, China, and others in a lower-cost 8-gigabyte variant -- will become the company's new low-end option following the introduction of the next-generation iPhone 6.
Comments
Good luck Google for promoting something so insecure your customers could loose more in one hack that it cost them to buy your phone!
Emerging markets are the next big thing. It makes sense for both Google and Apple to make a push in that direction.
What the fsck do they care about their “customers”? If one of their products gets its information stolen, that’s Google doing its job right.
Apple doesn't have a low cost play for iPhones. The iPhone 5c is currently a $550 phone, and will probably be a $450 phone by fall of 2014. Even the iPhone 4S will be on the order of $300 to $400 by then. That's mid-range at best.
So, Android One is not a play at Apple. Rather, it's maybe a response to AOSP vendors, which can be super low cost, that don't have Google Play services installed.
Meanwhile, in the real world, banking theft malware has tripled in 6 months.
Good luck Google for promoting something so insecure your customers could loose more in one hack that it cost them to buy your phone!
I can't find a source on those figures - could you link me an article on it? Would be interested to see what it says.
You're referring to banking malware delivered via "phishing". All the mobile OS's are just as open to that, iOS included.
As for Android One it allows Google to deliver updates directly to those smartphones as they do with Nexus device and bypassing the carriers as Apple does. I don't see a downside to it.
Banking Malware Source: http://www.technologyreview.com/graphiti/528306/malware-on-the-move/
Indeed as the other commenter noted, it may be phishing attacks are significant.
However, there are reportedly huge % of Android marketplace apps infected with malware designed to do keylogging.
Hence, phishing is hardly the only way Android users get screwed over because of a lack of a controlled and mediated app marketplace.
Google's 'Android One' program, what's that? Is Google nixing the buy one get one free these phone makers use to get rid of their excess inventory?!? You now only get one when you pay...
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Can you link some of those reports?
How long until Google abandons this initiative.
Banking Malware Source: http://www.technologyreview.com/graphiti/528306/malware-on-the-move/
Indeed as the other commenter noted, it may be phishing attacks are significant.
However, there are reportedly huge % of Android marketplace apps infected with malware designed to do keylogging.
Hence, phishing is hardly the only way Android users get screwed over because of a lack of a controlled and mediated app marketplace.
http://www.f-secure.com/static/doc/labs_global/Research/Threat_Report_H2_2013.pdf (page 27)
Surprisingly, there's very little malware in Google's Play Store, and according to F-Secure 'the Play Store is most likely to promptly remove nefarious applications, so malware encountered there tends to have a short shelf life'. It's true that almost all mobile malware is on Android, but it's also true that almost all of it is found in third-party marketplaces (typically ones based in China, India and Russia).
I have 2 co-workers whose bank accounts were raided because of their android phones. One refused to listen to me concerning the source because her note was her computer
After multiple hacks even after changing all her logins and passwords she still trusted her droid buddy that told her I was just making stuff up.(remember the standard response to issues with windows?). He convinced her it had to be an inside job at the bank hitting her up every pay day. Until she changed banks and got a call the day the first paycheck at that bank. Someone was hacking trying to access her account.
What kind of margin are you going to get on a $100 phone? $20 a unit would be aggressive. Maybe $10 is more likely. Maybe $5 if you include marketing and distribution costs. So a manufacturer goes to all the trouble to manufacture these to generate almost nothing. Might as well sell cricket bats to the masses.
The only winner is Google. What a surprise.
Apple can make earphones for Android One (Beats branded!) and make more money than the handset manufacturer.
If I understand correctly Google is only dictating the hardware, a necessity of course if they're going to deliver automatic updates to them in the same manner Apple does. The selling price is left up to the manufacturer/vendor.
I have 2 co-workers whose bank accounts were raided because of their android phones. One refused to listen to me concerning the source because her note was her computer
After multiple hacks even after changing all her logins and passwords she still trusted her droid buddy that told her I was just making stuff up.(remember the standard response to issues with windows?). He convinced her it had to be an inside job at the bank hitting her up every pay day. Until she changed banks and got a call the day the first paycheck at that bank. Someone was hacking trying to access her account.
I would love to believe this, I really would. But that sounds so dramatic, that it could be a discarded script from Hollywood...
I guess we have to assume that $100 is the off contract price? I don't think I saw it stated explicitly.
What kind of margin are you going to get on a $100 phone? $20 a unit would be aggressive. Maybe $10 is more likely. Maybe $5 if you include marketing and distribution costs. So a manufacturer goes to all the trouble to manufacture these to generate almost nothing. Might as well sell cricket bats to the masses.
The only winner is Google. What a surprise.
Apple can make earphones for Android One (Beats branded!) and make more money than the handset manufacturer.
HA! It is "payback" for Google making more money on iOS users than on Android...
. . . It's true that almost all mobile malware is on Android, but it's also true that almost all of it is found in third-party marketplaces (typically ones based in China, India and Russia).
Precisely the markets targeted by the Android One program.
. . . As for Android One it allows Google to deliver updates directly to those smartphones as they do with Nexus device and bypassing the carriers as Apple does. I don't see a downside to it.
How will Google's advertising business be helped by Android's expansion in the developing world?
Can Google come up with a better name? After HTC One, Xbox One, now Android One...sigh!
I think you are onto something. AOSP gives Google no revenue and no control. Companies can simply reuse AOSP without Google's services, like the Play store. I think this gives Google more influence in products made for emerging markets.
You're referring to banking malware delivered via "phishing". All the mobile OS's are just as open to that, iOS included.
As for Android One it allows Google to deliver updates directly to those smartphones as they do with Nexus device and bypassing the carriers as Apple does. I don't see a downside to it.
There you go again. Trying to conflate malware in Google Play apps with phishing.
Shame on you.