The stock of Alphabet Inc (NASDAQ:GOOG) closed at $928.45 and maintained the same position in yesterday’s trading session. This provider had over numerous instances attempted to lock down the enormous Indian smartphone market with its Android One smartphone program.
Google was optimistic that the Android One would succeed at impressing a lot of users by helping them obtain cheap smartphones employing latest version of Android. This was indeed a remarkable strategy towards kicking out Apple Inc (NASDAQ:AAPL) while at the same time guarding against the chaos of Android fragmentation.
Just like it usually happens with a lot of plans, matters did not play out according to the provider’s plan. Google won’t stop there and has resorted to taking another crack at it. The company will be collaborating with Xiaomi, a move that will lead to offering the Chinese provider’s mid-range Mi A1 as the new Android One flagship.
The current times are witnessing a number of the 4G networks roll out aggressively across the country. Only about 50% of phone users have converted to smartphones so far. A population of 1.32 billion sheds light on India as a lucrative business opportunity. That is for any selling the products needed by such a huge population.
Analyst have taken the perspective that Google needs to consider hooking large segment of those numbers with its services .Most probably, that could end up boosting its stock by quite a large margin.
An official working with Google stated, “Having Android One partners offer Android devices that received official updates reduced the degree of fragmentation. It ensured buyers had direct access to the latest Google services, instead of having third-party equivalents added in by smartphone manufacturers.”
It was easy to see that indeed the main issue was that a large number of those smartphones were going at very cheap prices. A significant number of the Indian consumers have been looking more inclined to settling for the $100 smartphones Google’s partners were offering. It is obvious Google was missing on the growing midrange as well as at the bottom.