In June 2014, Google launched a new version of Android named AndroidOne that would help smartphone makers to make very cheap smartphones. This latest software platform will be launched in India first in collaboration with three smartphone manufacturers: Micromax, Spice and Karbonn. Google has partnered with these three manufacturers so that they can pool in resources and make high quality, low priced smartphones.
Google and the head of its Android division Sundar Pichai want the next one billion smartphone users to be their customers.
Google will do all the hard work. It is figuring out all the material costs and giving support to all the low-end smartphone manufacturers. And not just the software support, but also the hardware support. This is being done to decrease the total cost of the phone to try and keep it under $100. Add to this the fact that Google will also invest Rs.100 crores with its partners on advertising and marketing of the $100 smartphone!
Why is it doing this?
It’s putting in this hard work on the hardware and software fronts so that eventually, these smartphone users start accessing Google’s services like Google Play, Google Store etcetera, and this would in the long run increase Google’s profits. More importantly, it would help it fight competitors like Nokia (Windows platform from Microsoft). Not just this, but having more users means more data and more advertisements... and consequently more money for Google.