Google working with Indian handset makers

13 October 2010 – The Wall Street Journal reports that Google is "pushing to become a significant player in India's huge wireless industry," working with a number of the country’s local handset manufacturers to launch low-cost Android-powered devices in the coming months. While Android-powered handsets are already available in the country from vendors including Motorola and HTC, these are often costly when taking into account the low wages earned by much of the country's population. In order to deliver lower cost terminals, Google is working with Micromax Informatics, Spice Mobility and Olive Telecom to deliver products priced at US$150, to be driven down to sub-US$100 in the future - Motorola and HTC smartphones cost upward of US$400. The report notes that Micromax, Spice, Olive and other Indian companies have "never made a smartphone before," which could lead to "glitches" in early releases.
A recent IDC market survey indicates that the Indian handset market has a number of unique characteristics, not least of which is the fact that there are a number of local vendors (around 35) which make-up one-third of the market – Nokia is the largest single vendor, also with around one third of the total. The unique demands of the market also means that vendors need to offer devices tailored to the local market – for example, IDC reports that almost 40 percent of devices sold have multi-SIM capabilities. Even at US$100, the devices are costly when compared to feature phones, which are priced closer to US$40, and at the moment India is lacking in terms of the 3G network coverage which is integral to the smartphone user experience.