Google Is Claiming Emerging Markets with This Innovative Android Feature

Google has announced the Android one initiative for the emerging markets. The result would be low-cost phones loaded with the latest Android. All in all, Google is set to lead the smartphone growth of the emerging markets.

Jun 30, 2014 at 12:00PM

Google (NASDAQ:GOOG)(NASDAQ:GOOGL) is often criticized for the sub-par user-experience and the security issues of the Android devices. Android fragmentation , i.e. divergent variants of Android, results in the inability of some devices to properly run the apps written in the Android's software development kit, and hence the criticism.



Google recently announced the Google-one initiative. The company will be able to control the set of hardware and software standards in the low-end of the smart-phone market. The result would be a less-fragmented Android, enabling a complete Android experience along with a low-level of security threats across devices. This is just the tip of the iceberg though. The detailed implications follow below, but first, what is the Android-one initiative?

The initiative
Google is basically saving OEMs of the headache to design the hardware. Google will design the reference hardware and the OEMs will just manufacture the phone. On the software side, the Android-one smartphones will feature the latest stock Android, and they will also receive timely updates from Google. In a nutshell, Google is planning to control the hardware and the software standards. Google is working with the local Indian manufacturers like Micromax to develop sub-$100 phones in a hope to push the Android-one phones into the emerging Indian market. These phones will feature a 4.5" screen, dual-sim, and an FM radio.

 Picture credit: BGR

As Google is designing the hardware, OEMs will save the cost and the time consumed on the hardware design. This will obviously enable them to offer lower-cost smart-phones. But unlike the current cheap Android phones, which run on outdated Android, the Android-one phones will run on the latest Android. The low-cost, latest Android combination is promising for the growth of Google's mobile OS. We already witnessed the success of this combination in the form of the Moto G and the Moto E.

The fragmentation of Android, as we know it, will end. The growth of the Android-one phones will increase the share of the latest Android in the total installed Android-base. The high-end phones already feature the latest Android. Fragmentation comes from the low-end, cheap-devices market. Google-one aims to eliminate the fragmentation from the cheap devices. This will result in a more homogeneous Android across different ends, and as a result, Android will be more secure due to the timeliness of security updates across devices.

Fragmentation also creates problems for the developers. It is quite challenging and time consuming to develop a single app for different variants of Android. These apps usually don't work smoothly across different variants. The end of fragmentation will resolve this problem. The apps will be bug-free on a consistent basis, which was Apple's competitive advantage until now.

As far as Google is concerned, the company will increase its Android footprint in the emerging markets due to the Android-one. Microsoft (NASDAQ:MSFT) is pushing its services through Nokia X in the emerging markets and it is a threat to the footprint of Google's services. Nokia X currently has the advantage of a much better OS experience as compared to the cheap Android phones. However, Google is going to change that with the latest stock Android pre-installed on cheap Android-one devices. The Nokia X threat is neutralized to some extent as a result of the Android-one initiative.

Bottom line
The Android-one initiative is set to kill many birds with one stone. Google's reference design will result in low-cost Android phones. Fragmentation will be minimized resulting in a less vulnerable Android, thus addressing the sole-objection of the Apple fan-boys. The apps will be more consistent and bug-free with Apple's competitive advantage in the app store department being lost. Google also addresses the Nokia X problem with the launch of Android-one, thereby restoring the growth prospects of its services in the emerging markets. All in all, Google's is poised to take the lion's share of "the next billion" smart-phone users.

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Sid A. has no position in any stocks mentioned. The Motley Fool recommends Google (A shares) and Google (C shares). The Motley Fool owns shares of Google (A shares), Google (C shares), and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information