Saturday, 22 November 2014

Google’s Android One phones struggle as retailers boycott them

Google’s Android One phones struggle as retailers boycott them
Google introduced Android One earlier this year targeting the budget smartphone segment but it doesn’t seem like it has worked out as planned.
The three phones produced by Micromax, Spice and Karbonn were initially available exclusively online but as it did not set the cash registers ringing, it was then made available to retailers across India. However, the devices haven’t sold well and many major retailers are refusing to stock the phones.
According to anonymous executives who spoke to The Economic Times, eight major electronics retailers in India including Tata-owned Croma, Future Group, Planet MRetail and Next Retail, BigC, Lot Mobiles, Reliance Retail and Sangeetha Mobiles, which between them have 1,800 stores, have not stocked any of the three Android One smartphones launched so far.
The CEO of a top consumer electronics retail chain was quoted as saying that the margin offered for Android One was around 3-4% which is much less than the industry average of 9-10%.
Android One launched in India with three devices namely Spice Android One Dream, Karbonn Sparkle V, and Micromax Canvas A1. All three phones did not generate enough buzz for people to purchase them online. In comparison, there has been a lot of interest in Xiaomi which also sells their products exclusively online. As there are other devices in the market offering similar specifications at a similar price, consumers don’t seem keen to invest in the Android One devices just yet.