Google wants to push super low price mobile phones in India. Can Xiaomi ov win in price war

 Google wants to push super low price mobile phones in India. Can Xiaomi ov win in price war

In the second quarter of this year, Chinese mobile phone brands accounted for as much as 75% of the Indian market, while Samsung in South Korea accounted for less than 20%, according to research firm canalys.

Potential market 900 million users

Gateway house, an Indian think-tank, predicts that Indian smartphone users will double to 900 million by 2025 as living standards rise and smartphone prices fall.

Prior to that, jio has already started selling low-cost 4G mobile phones and offering internet access packages. But according to Tarun pathak, deputy director of counterpoint research, according to data, Yaos share of functional machine users in India is no more than 20%.

Analysts at counterpoint research and IDC say Google will offer an Android based smartphone that costs no more than $50.

Currently, in Indias smartphone market, low-cost mainstream phones sell for between $70 and $100. Xiaomi leads the smartphone market at this price. According to IDC, Xiaomi accounts for about 40% of the $70 to $100 smartphone market, with Samsung and realm brands accounting for 17% and 11% respectively.

Kiranjeet Kaur, senior research manager at IDC, says that even with a $50 smartphone, many rural Indian users still cant afford it. Whats more, if you take into account the price of chips and monitors, its hard to control the price of the cheapest smartphone below $50.

Kaur also said that the low-cost mobile phones launched by Google and Gao may compete with Chinese mobile phone manufacturers.

However, Peng Luping, vice president of canalys mobile business, told the first finance and economics reporter: in the past, before Chinese manufacturers entered the Indian market, the prices of local mobile phone brands were also very cheap, but these products gradually failed in the follow-up channel after-sales and products. So this is not the first time that Chinese manufacturers have been challenged by low-cost products.

Peng Luping told the first finance and economics reporter that consumers in the Indian market have been relatively mature. The smart phone market in India is mainly dominated by replacement users. These existing phone exchange users do not take price as the only consideration, but more consider brand, cost performance and after-sales service.

Android accounts for more than 90% of Indias mobile operating system share

India has a stock of more than 100 million function machine users, and Ji hopes to transform the stock of function machine users and promote them to use smart phones for the first time. These target users mainly focus on price factors. Peng Luping said.

She also said that the recent geopolitical uncertainty has affected Chinese smartphone manufacturers in the Indian market, and they realize that in the follow-up competition, they can not rely on price advantage as the development strategy, but need to be more in-depth localization and brand value improvement.

Google and Ji jointly launch ultra-low-cost smart phones, not relying on the hardware itself to make profits, but rather to establish an ecosystem under their control.

The more users Android has, the wider its advertising audience will reach. Pathak says. Last year, more than 80% of Googles parent company alphabets revenue came from advertising, with advertising revenue totaling more than $100 billion.

In addition, the diversity of Indias population is also valued by Google because it means that Google can obtain more kinds of data samples and provide them with a better app experience.

According to statista, a data company, Android accounted for more than 90% of the Indian market for mobile operating systems in 2019. And Xiaomi, Samsung and other mobile phones will also launch their own user interface, compatible with Android system.

The novel coronavirus pneumonia epidemic in India is more serious. According to Canalys statistics, India mobile phone sales fell 50% in the second quarter of this year. The rise of jio during the outbreak also represents a historic opportunity for Indian technology companies.

In the past four months, Saudi Arabia invested more than $20 billion in public funds, including Google, Facebook and so on. With these funds, Ji will promote Indias digital transformation, especially in the fields of agriculture, education and health care. At the same time, India is promoting the one machine for all program.

On the other hand, with Googles latest investment, the company has been valued at more than $65 billion, which will allow the company more capital to buy small Indian technology companies to compete with Chinese investors.

At present, Chinese capital has invested in more than half of Indias 30 unicorns. Since 2015, Chinese capital has invested a total of $4 billion in Indian start-ups, according to gateway house. Take Alibaba as an example. Its investment projects in India include snapdeal, a digital payment company, and zomato, a digital payment company. Tencent has invested in Indian chat software company hike and taxi platform Ola.