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Chinese mobile makers are giving the global players like <keyword id="10591" type="CITY" weightage="20" keywordseo="Samsung">Samsung</keyword> and <keyword id="6354427" type="CITY" weightage="20" keywordseo="Apple">Apple</keyword> a really tough time. Even the India players are taking a blow, amid heightened competition and demonetisation that has shrunk smartphone sales in the Indian market. 
 Chinese players like <keyword id="1731609" type="UNKNOWN" weightage="20" keywordseo="Oppo">Oppo</keyword>, <keyword id="215177" type="COMPANY" weightage="20" keywordseo="Vivo">Vivo</keyword>, <keyword id="874458" type="COMPANY" weightage="20" keywordseo="Xiaomi">Xiaomi</keyword>, <keyword id="13722" type="CITY" weightage="20" keywordseo="Lenovo">Lenovo</keyword> and <keyword id="1188106" type="COMPANY" weightage="20" keywordseo="Gionee">Gionee</keyword>, which have been very aggressive in marketing, have cornered more than half of the smartphone market by shipments in November, for the first time ever, even as Apple's shipments fell sharply and Samsung's was mostly flat compared to October 2016. 
 
"This is the first time that Chinese brands together account for 51% share in smartphone segment, resulting in Indian brands combined share to drop below 20%, from a peak of over 40% earlier this year. In just a couple of months, the tides have changed, which shows volatility of the Indian smartphone market,” Neil Shah, research director at Hong Kong-based Counterpoint Research, told ET. 
 
As of September-end, Indian players were at par with Chinese smartphone makers, each having 34% share of the market. They were followed by global players, led by Samsung and Apple, with 32% share. 
However, the picture totally changed in October during the festive sales, when Chinese players' share jumped to 47%, and then a further four percentage points in November. On the other hand, multinational players dominated largely by Apple and Samsung lost three percentage points month-on-month, to be at 32% in November. Indian players were at a dismal 18% in October and November. 
 
As per the analysts, Chinese players' share can well rise to 60% of the smartphone market by middle of 2017. 
 
Players like Samsung, which had a 22.6% share around September end, have seen flat shipments in November as consumer demand plunged post demonetisation. However, the impact was more on Apple as the company's shipments fell by half, from 4 lakh units shipped in October, as per market estimates. This is despite a sharp spike in the few days after the demonetisaton announcement on November 8. 
 
Demonetisation has also affected consumers' ability to buy phones in the sub-6,800 price category - the bread and butter of most Indian handset players. This is also the segment where most of the featurephone to smartphone transition was happening - a transition that has slowed, thanks to affordability and use case issues. 
 
"The Indian vendors' prime focus is the entry level segment, which is mainly driven by cash, while Chinese players operate in the higher price segments, where largely transactions are done through cashless media,” Jaipal Singh, senior analyst at IDC, told ET. 
 
For local brands to grow at the expense of Chinese brands, they will have to compete with an effective portfolio in the 8,000 to 30,000 price segment, analysts say, where they are mostly absent. 
 <keyword id="1622907" type="PERSON" weightage="20" keywordseo="Faisal-Kawoosa">Faisal Kawoosa</keyword>, principal analyst at CyberMedia Research (CMR), said Indian vendors lately felt that there is still potential in feature phone segment, which had an impact on their smartphone strategies. 
 
Indian players highlight the financial support Chinese players get from their government to enter Indian market - critical arsenal that Indian players don't have to fight off competition. 
 "The money they are spending on each handset, I don't think any Indian company or multinational company can do it,” Pradeep Jain, MD at <keyword id="84409" type="PERSON" weightage="20" keywordseo="Karbonn-Mobiles">Karbonn Mobiles</keyword>, which has seen primary sales go down by 40%, told ET. 
 
"It's not good for India the way Chinese government is supporting these companies to enter the Indian market and sell their smartphones. In my view, it would pose a challenge to Indian companies,” he added.

51% of the Indian smartphone market is comprised of Chinese phone companies by shipments

<a href="http://www.businessinsider.in/searchresult.cms?query=chinese+smartphone+markers&amp;sortorder=effectivedate">Chinese smartphone makers</a> are advertising and marketing their brands in India like never before, giving Indian counterparts new goals for re-strategising and re-branding. 
 
Brands such as <a href="http://www.businessinsider.in/searchresult.cms?query=vivo&amp;sortorder=effectivedate">Vivo</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=gionee&amp;sortorder=effectivedate">Gionee</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=oppo&amp;sortorder=effectivedate">Oppo</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=leeco&amp;sortorder=effectivedate">LeEco</a> have increased their brand presence, majorly in offline medium than online and are even doubling the commission by 10 per cent. 
 
"Indian players, which usually operate on 2-3 per cent margins, are facing tough competition from Chinese players. Further, online-only Chinese players are willing to sacrifice margins, even go into negative margins," Counterpoint Research senior analyst Tarun Pathak, told ET. 
 
Not only this, the smartphone makers also paying charges between Rs 30,000 and Rs 31 lakh to mom-n-pop stores for redesigning their shop fronts and carrying the brand's name, which was done for free earlier. 
 "Tapping the retailers for a branding opportunity is a great idea which is proving to be effective for us," Vivek Zhang, chief marketing officer at <keyword id="215177" type="COMPANY" weightage="20" keywordseo="Vivo">Vivo</keyword> India, told ET. 
 
The Chinese presence has made Indian smartphone makers increase their budget for marketing and advertising as they have to match to survive the competition. 
 
Indian players such as <a href="http://www.businessinsider.in/searchresult.cms?query=micromax&amp;sortorder=effectivedate">Micromax</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=intex&amp;sortorder=effectivedate">Intex</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=lava&amp;sortorder=effectivedate">Lava</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=karbonn&amp;sortorder=effectivedate">Karbonn Mobiles</a> have to compete aggressively. 
 "We've always maintained that significantly high advertising spends and trade margins to gain short-term market share is unsustainable - especially true in the current scenario where overall industry margins are under pressure," Shubhajit Sen, chief marketing officer at <keyword id="71696" type="COMPANY" weightage="20" keywordseo="Micromax">Micromax</keyword> Informatics, told ET. 
 
As of the quarter ended March 31, Chinese players had a 22 per cent share of smartphone sales, which is expected to increase to 25 per cent, said analyst Pathak. 
 
"We have spent about $10 million (about Rs 67 crore) on marketing online and print in the first quarter this year, and we will spend similar amounts for quarters to come," LeEco's COO Atul Jain told ET. 
 
(Image: Thinkstock)

Chinese smartphone makers are raking in money on brand presence and this is giving Indian counterparts solid competition

Way before when reality shows became a staple of Indian television culture, <keyword id="17442" type="PERSON" weightage="100" keywordseo="Annu-Kapoor">Annu Kapoor</keyword> was hosting one. It went by the name of <keyword id="400" type="PERSON" weightage="100" keywordseo="Antakshari">Antakshari</keyword>, a singing reality show, which was conceived and directed by <keyword id="27515" type="PERSON" weightage="100" keywordseo="Gajendra-Singh">Gajendra Singh</keyword>, the man behind many other successful reality shows. 
 The famous show, which has given us wonderful Bollywood singers like <keyword id="6574" type="PERSON" weightage="100" keywordseo="Sonu-Nigam">Sonu Nigam</keyword>, <keyword id="5293" type="PERSON" weightage="100" keywordseo="Sunidhi-Chauhan">Sunidhi Chauhan</keyword> and <keyword id="7185" type="PERSON" weightage="100" keywordseo="Shreya-Ghoshal">Shreya Ghoshal</keyword>, will be back on Indian screens after a hiatus of 8 years. 
 It will be telecast on <keyword id="14750" type="PERSON" weightage="100" keywordseo="SAB-TV">SAB TV</keyword>, a GEC owned by MSM Motion Pictures. Annu Kapoor is likely to be seen as the judge of the show. <keyword id="6376169" type="PERSON" weightage="100" keywordseo="mantra">Mantra</keyword> and <keyword id="423078" type="UNKNOWN" weightage="100" keywordseo="sugandha-mishra">Sugandha Mishra</keyword> (popular faces of Indian television) will be show’s new hosts. In the past, artists like Durga Jasraj, Renuka Shahane, Pallavi Joshi, Shefali, Rajeshwari Sachdev and Richa Sharma co-hosted the show with Annu Kapoor. 
 
The show has been rechristened as <keyword id="2517831" type="UNKNOWN" weightage="100" keywordseo="Family-Antakshari">Family Antakshari</keyword>, and would see 4 members of a family participating in the show. The auditions have begun and are underway. Interested families can send in their participation by recording an audition video sharing their happiest and saddest moments, their individual talents, and of course, playing antakshari. 
 
The weekend show starts from ​8 PM on 27th September, and will be sponsored by Karbonn Mobiles, and powered by Lifebuoy.

Gajendra Singh Brings Back Antakshari

<keyword id="84409" type="PERSON" weightage="100" keywordseo="Karbonn-Mobiles">Karbonn Mobiles</keyword> has started a revolution today that will urge its competition to bring phones with <keyword id="6355645" type="COMPANY" weightage="40" keywordseo="android">Android</keyword> KitKat operating systems quickly. Today the Indian company made two announcements. One, they will cross Rs 4,500 crores revenue in the fiscal ending march 2014. And two, they have brought three new phones in India that have extreme performance and all of them will run Android’s latest KitKat OS. 
 The first phone to come from Karbonn Mobiles is Titanium <keyword id="2148281" type="UNKNOWN" weightage="100" keywordseo="Hexa">Hexa</keyword> that has a 5.5-inch full HD touchscreen. It also has <keyword id="6369515" type="COMPANY" weightage="40" keywordseo="Mediatek">Mediatek</keyword>’s 1.5 GHz Hexa core CPU, 16 GB storage, 13 MP rear cam and 2GB RAM. So far we have seen dual, quad and octacore processors in mobiles. This is the first phone that has 6 cores in its CPU. Titanium Hexa has a 2,050 mAh battery inside and will sell at Rs 16,990. 
 The next in line is Titanium <keyword id="638344" type="ORGANIZATION" weightage="100" keywordseo="OCTA">Octa</keyword>ne, which has a 5-inch IPS touchscreen. Configuration includes Mediatek’s Octa core 1.7 GHz cpu, 16 GB internal storage with the ability to expand it upto 32 GB, 13 MP rear camera and a 2,000 mAh battery. This phone is the cheapest of the lot and can be picked up for Rs 14,490. 
 The last to be launched by Karbonn’s Mobiles today was the Titanium <keyword id="1034118" type="UNKNOWN" weightage="100" keywordseo="octane">Octane</keyword> Plus. This phone has the same configuration as the Titanium Octane, except it has 2GB RAM and 16 MP rear camera along with 8 MP front camera. Titanium Octane Plus will retail for Rs 17,990. 
 
The new line-up of the multi-core smart phones from Karbonn looks impressive and will surely extend the company’s reach. After today’s launch by Karbonn Mobiles, Micromax is slated to launch new devices tomorrow. Stay tuned as this week promises to reveal some super smart phone strength from the Indian manufacturers.

Karbonn Mobiles Launch Titanium Hexa, Octane and Octane Plus
Smart Phones With Android KitKat OS In India

<ul><li>The Indian smartphone industry expects fewer or no increase in component duties for smartphones.</li><li>A 2.5 per cent customs duty on imports of electronics along with other factors led to an increase in smartphone prices.</li><li>For homegrown brands in particular, a separate budget to help bring more Indian smartphone brands is expected.</li></ul>In the 2021 Union Budget, a 2.5 per cent customs duty was imposed on the import of electronics. This was in line with the Indian government’s larger plan to boost local manufacturing of electronics. Higher duties on components would lead to smartphone companies relying on local production in the country. But this also led to an increase in smartphone prices along with other factors such as the ongoing global chip shortage. The <a href="https://www.businessinsider.in/budget" data-type="tilCustomLink">Union Budget 2022</a> will be announced on February 1 by Finance Minister Nirmala Sitharam, and this year fewer or no increases in component duties are expected from the smartphone industry. According to Hari Om Rai, chairman and managing director of phone maker Lava International, there are two major demands from the industry. One is to not impose any “further increase in component duties in this budget as it impacts our global competitiveness.” The other demand is to create a separate budget for homegrown brands. “We are looking at creating economies of scale to create global competitiveness, [and] value-addition will follow,” Rai said. Lava is among the few Indian smartphone brands that still operate and launch products. Other brands like Intex Technologies and Karbonn Mobiles shut shop primarily due to the influx of Chinese brands in the country. Lava launched its first 5G smartphone ‘Agni 5G’ in India last November. Another Indian smartphone brand still floating is Micromax, which made a comeback last year with new smartphones and wireless earbuds as well. But the majority of the Indian smartphone market is occupied by Chinese brands including Xiaomi, Vivo, Realme and Oppo, according to quarterly data from Counterpoint Research. The reason is aggressive pricing and high-specced devices. <div type="image" title="nft - 2022-01-31T192425.461" msid="89251597" hostid="261" caption="&amp;lt;p&amp;gt;Indian smartphone market share in 2021.&amp;lt;/p&amp;gt;"></div> An example of this is Bengaluru-based <a href="https://www.vccircle.com/sachin-tendulkar-backed-smartron-gets-up-to-200-mn-gem-group-s-commitment">Smartron</a>, a tech brand backed by Sachin Tendulkar that silently exited the smartphone market in India. It launched budget smartphones under ₹10,000, and it also launched tablets under its product portfolio. The brand is now focusing on expanding its smart home segment with its IoT ecosystem ‘tronX’. Another homegrown and Bengaluru-based startup Creo that tried its luck not only in smartphones but a custom OS as well. Founded by former Hike employees, Creo had launched the <a href="https://www.techradar.com/in/news/hike-acquires-creo-the-makers-of-os-centric-mark-1-smartphone">Mark 1 smartphone</a> that ran on Android-based Fuel OS. The company soon decided to end production of the device and focus on Fuel OS. According to Upasana Joshi, research manager, client devices at IDC India, Indian smartphone brands “continue to struggle in comparison to global or Chinese players owing to the large scale of business and acceptability in the market.” One way of helping bring up more Indian smartphone brands would be a separate budget to build “National Champions” according to Rai. “To acquire strategic skills and become global Indian champions have a remarkable potential to create national wealth and become beacons of economic progress for India's long term technological and financial independence. It is highly imperative to develop and bolster Indian champions to bring strategic skills and technology and augment GDP, employment, and foreign exchange,” Rai said. Another expectation is “huge investments to match production, marketing and operational spends in a consolidated smartphone market like India,” according to Joshi. For the smartphone industry in general, <keyword id="10547300" type="General" weightage="20" keywordseo="budget-2022" source="Orion">Budget 2022</keyword> is expected to continue the “push for establishing component factories and making them available locally, along with fewer exemptions,” Joshi added. But we may continue to see smartphone prices increasing even in 2022. “IDC expects ASPs (average selling price) for smartphones to only rise further and peak annually,” Joshi said. Regardless, as per research firm Counterpoint, India's smartphone market revenue crossed $38 billion in 2021 with 27 per cent (on-year) growth, as shipments grew 11 per cent to reach 169 million units. It would be interesting to see how the upcoming budget will aid the existing Indian manufacturers to bolster their share to survive, unlike their counterparts that had to quit the business. SEE ALSO: <a href="https://www.businessinsider.in/budget/news/budget-2022-expectation-why-india-needs-an-urban-mgnrega/articleshow/89199969.cms" data-type="tilCustomLink">Budget 2022 expectation: Why India needs an urban MGNREGA</a> <a href="https://www.businessinsider.in/budget/news/union-defence-budget-2022-submarines-drones-warships-and-aircraft-carriers/articleshow/88989045.cms" data-type="tilCustomLink">This year’s defence budget may focus on building submarines, drones, warships and aircraft carriers</a>

India Budget 2022 expectations: Fewer or no increase in component duties for smartphones

Companies such as <a href="http://www.businessinsider.in/searchresult.cms?query=Micromax">Micromax</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=Karbonn">Karbonn</a>, Lava, and <keyword id="10387" type="CITY" weightage="100" keywordseo="Microsoft">Microsoft</keyword> have increased their spending on digital advertising, to target e-Commerce savvy buyers. 
 <keyword id="71696" type="COMPANY" weightage="80" keywordseo="Micromax">Micromax</keyword>, the nation's No. 2 smartphone vendor, used to spend about 10% of its marketing budget on digital media till last year. But it has increased its budget. Now over a third of it goes to fund online ad campaigns, reported the Economic Times. 
 Not only that <keyword id="145729" type="COMPANY" weightage="80" keywordseo="Karbonn">Karbonn</keyword>, <a href="http://www.businessinsider.in/searchresult.cms?query=Lava+">Lava</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=Microsoft+">Microsoft</a> have also increased their spending on digital advertising. The companies want to focus on the fast expanding clutch of buyers who first do the online research to zero in on a product and then buy it from one of the <a href="http://www.businessinsider.in/searchresult.cms?query=e-Commerce+">e-Commerce</a> sites. 
 
There are many benefits associated with the digital marketing. It is more personalised, which allows direct interaction between the brand and the consumer, and the response is easily measurable, unlike those on mass mediums like TV, radio or print. 
 
Digital marketing also offers data that industry experts say put them in a better position to make informed decisions. 
 
Chief Marketing Officer at Micromax Informatics, Shubhajit Sen, said: "We try to find out what people are talking today and if there is a scope or an insight to convert it into a marketing and advertising campaign." 
 
The company spends about 2% of its sales on advertising and marketing. In 2014-15, it posted sales of over Rs 10,000 crore. 
 Handset vendors are among the biggest spenders on advertising in India. Homegrown Karbonn and Lava, as well as Microsoft Mobile Devices said they have all significantly boosted spending on digital marketing in line with changing market trends. Some others such as <keyword id="874458" type="COMPANY" weightage="100" keywordseo="Xiaomi">Xiaomi</keyword>, <a href="http://www.businessinsider.in/searchresult.cms?query=OnePlus+">OnePlus</a> and <keyword id="11148" type="CITY" weightage="80" keywordseo="Motorola">Motorola</keyword>, which sell products only through eCommerce sites, do most marketing through digital media. 
 According to experts, the handset vendors are tapping all the digital channels - search, display or social media. With India's increasing Internet usage, the spending on digital advertising will only grow. A surge in sales via eCommerce is becoming the main driver behind the increased digital spending of handset vendor, said Faisal Kawoosa, lead analyst at <keyword id="611566" type="ORGANIZATION" weightage="60" keywordseo="CyberMedia-Research">CyberMedia Research</keyword>. 
 
"Every brand try to establish its presence in online space, since a majority of sales in future is going to happen through online portals," he said. 
 
According to Hong Kong-based market research firm Counterpoint, as much as 30% of the smartphones sold during the second quarter were through online channels and online-only smartphone sales contributed to more than 20% of the total sales. Companies can also fetch out insightful analytics from digital channels that help improve marketing strategy, Kawoosa said. 
 Karbonn Mobiles executive director <keyword id="315288" type="PERSON" weightage="60" keywordseo="Shashin-Devsare">Shashin Devsare</keyword> said that the efficacy which can be measured on digital medium is pretty strong. A brand can do segment targeting far more accurately than any conventional medium, and this leads to enhanced return on investment and better planning of marketing campaigns, he said. 
 
Solomon Wheeler, head of marketing and communication at Lava International, said content consumption of users has shifted from mass mediums to digital. 
 
(Image: Indiatimes)

Micromax, Karbonn, Lava, and Microsoft have unleashed a marketing blitz in India!

The <a href="http://www.businessinsider.in/searchresult.cms?query=4G+">4G</a> battle has already begun between <a href="http://www.businessinsider.in/searchresult.cms?query=India+and+China+">India and China</a> with the latter taking a substantial lead in the Indian smartphone market for the high-speed devices. 
 
The homegrown brands are of the opinion that their rivals have been dumping handsets in the country ahead of networks being properly rolled out. However, the accusation has been rejected by an executive at one of these rapidly growing Chinese firms. 
 
The executive said Indian sellers are having a tough time because the companies they have been sourcing from in China have entered India and this is the reason why Indian firms have failed to catch the 4G market. 
 
On the other hand, Indian companies said that these devices might not even be properly enabled for the kind of 4G services being rolled out in India. Chinese companies are treating India as a "dumping ground" for 4G phones that may not have Band 3 or the 1800 MHz band, said Vikas Jain, cofounder of <a href="http://www.businessinsider.in/searchresult.cms?query=Micromax">Micromax</a>, India's No. 2 phone seller. 
 
This is one of two bands on which India has allowed 4G LTE services, the other being 2300 Mhz. 
 
Pardeep Jain, <a href="http://www.businessinsider.in/searchresult.cms?query=Karbonn+">Karbonn</a> Mobiles MD, is of the view that Chinese vendors have been dumping excess 4G inventory and playing the price game to gain market share. "They are worried that all manufacturing facilities are coming to India, so what they will do now? These companies have wrongly projected the market demand in China and are now dumping that extra inventory in India at lower cost," he said. 
 <keyword id="6354287" type="CITY" weightage="80" keywordseo="Bharti-Airtel">Bharti Airtel</keyword> has commercially launched 4G services while Reliance Jio, <keyword id="6354924" type="PERSON" weightage="80" keywordseo="Idea-Cellular">Idea Cellular</keyword> and <keyword id="6354923" type="COMPANY" weightage="60" keywordseo="Vodafone-India">Vodafone India</keyword> will do so either later this year or in 2016. 
 Arvind Vohra, country CEO and managing director of <keyword id="2083774" type="COMPANY" weightage="40" keywordseo="Gionee-India">Gionee India</keyword>, has different story to tell. He said the company's phones are priced higher than those sold by local rivals and of excellent quality. "Our pricing of devices is much higher than Indian players. Besides, our devices are world-class. There's no question of us dumping substandard products in India." 
 The question arises, why Chinese phone makers are ahead of local sellers? It is because they have made early inroads. Chinese handset makers <keyword id="13722" type="CITY" weightage="40" keywordseo="Lenovo">Lenovo</keyword>, <a href="http://www.businessinsider.in/searchresult.cms?query=Xiaomi%2C+Huawei+and+Gionee+">Xiaomi, Huawei and Gionee</a> accounted for 12% of total India smartphone market in Q2, up two-fold from a year ago, as per IDC. 
 
As for 4G phones, Chinese players have have 45% of the market while Indian makers have less than 10%. Samsung, which sells the most mobile phones in India, leads in 4G as well. The segment surged 150% in the June quarter from the preceding one. 
 
The other reason is Chinese companies have also been able to leverage the online model in India. "Key to the success of the Chinese vendors has been popular flash sales through online players such as <a href="http://www.businessinsider.in/searchresult.cms?query=Flipkart%2C+Snapdeal+and+Amazon">Flipkart, Snapdeal and Amazon</a>," said Kiran Kumar, senior analyst at IDC India. 
 
"At the same time, they also focused on bringing more 4G phones at affordable $100-150 (Rs 6,700-10,000) price points, which are left unattended by Indian and global vendors." 
 
(Image: Indiatimes)

The battle of 4G: Is India a dumping ground for Chinese phone makers?

At the Google I/O conference Wednesday afternoon, Sundar Pichai announced a new Android platform initiative to target users in emerging markets. 
<div class="KonaFilter image-container float_right click-to-enlarge" style="width:400px"><div class="image"><a title_source="BII" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/5319f3deecad04497c0acc93-960/bii_emgmkts2014.png"></a>BII</div></div>
With this project - dubbed Android One - Google will work hand-in-hand with low-cost smartphone manufacturers in emerging markets, providing them with a stock version of Google's Android to run on their devices, as well as hardware specifications that manufacturers can use to build cheap Android phones. 
The idea is to target mobile users in burgeoning mobile markets where the next billion smartphones will be sold - like India, where the Android One program will launch. Google already has Android One devices in development with Indian vendors Micromax, Karbonn Mobile, and Spice Mobile.
<a href="https://intelligence.businessinsider.com/why-the-next-apple-or-samsung-will-come-from-india-or-china-2014-3?utm_source=House&amp;utm_medium=Edit&amp;utm_term=M-AOSP-XIaomiCombo-6-26-14&amp;utm_content=link&amp;utm_campaign=BIIMobile" onclick="this.href = this.href + '-' + window.location.search.substr(1).replace(/\&amp;|\=/g, '-');">BI Intelligence finds that India alone will combine for over 200 million smartphone sales in 2014, followed by markets like Brazil and Indonesia. </a>
In these countries, sales to people buying smartphones for the first time will absolutely overshadow sales in developed markets. And many of these first-time smartphone users will be buying from local manufacturers making cheap but serviceable smartphones. Google wants to make sure its Android platform is part of this movement. As much as possible, Google wants to move towards one software and hardware standard in the low-end market.
Why?
Because these local manufacturers may otherwise turn to forked versions of Android - devices running on the Android Open Source Project (AOSP) - which essentially cut Google out of several of its key services and potential revenue streams. 
Here are some key numbers from BI Intelligence's tracking of the market for forked Android devices: 
<ul>
<li><a href="https://intelligence.businessinsider.com/why-the-next-apple-or-samsung-will-come-from-india-or-china-2014-3?utm_source=House&amp;utm_medium=Edit&amp;utm_term=M-AOSP-XIaomiCombo-6-26-14&amp;utm_content=link&amp;utm_campaign=BIIMobile" onclick="this.href = this.href + '-' + window.location.search.substr(1).replace(/\&amp;|\=/g, '-');">About 22% of all smartphones shipped in the first quarter of 2014 run a forked version of Android. That amounts to about 53.8 million AOSP devices.</a></li>
<li><a href="https://intelligence.businessinsider.com/why-the-next-apple-or-samsung-will-come-from-india-or-china-2014-3?utm_source=House&amp;utm_medium=Edit&amp;utm_term=M-AOSP-XIaomiCombo-6-26-14&amp;utm_content=link&amp;utm_campaign=BIIMobile" onclick="this.href = this.href + '-' + window.location.search.substr(1).replace(/\&amp;|\=/g, '-');">AOSP gained more market share than any other platform in the past year. AOSP market share is up three percentage points, from 19% in the first quarter of 2013. </a></li>
<li><a href="https://intelligence.businessinsider.com/why-the-next-apple-or-samsung-will-come-from-india-or-china-2014-3?utm_source=House&amp;utm_medium=Edit&amp;utm_term=M-AOSP-XIaomiCombo-6-26-14&amp;utm_content=link&amp;utm_campaign=BIIMobile" onclick="this.href = this.href + '-' + window.location.search.substr(1).replace(/\&amp;|\=/g, '-');">AOSP shipments grew at over twice the rate of Google-licensed Android shipments during the quarter. Android phone shipments increased 19% year-over-year compared to 40% year-over-year growth in AOSP shipments. </a></li>
<li><a href="https://intelligence.businessinsider.com/why-the-next-apple-or-samsung-will-come-from-india-or-china-2014-3?utm_source=House&amp;utm_medium=Edit&amp;utm_term=M-AOSP-XIaomiCombo-6-26-14&amp;utm_content=link&amp;utm_campaign=BIIMobile" onclick="this.href = this.href + '-' + window.location.search.substr(1).replace(/\&amp;|\=/g, '-');">Looking at just the Android platform, AOSP phones accounted for 29% of all Android smartphone shipments in the quarter. That's up from 26% in the same quarter a year ago.</a></li>
</ul>
Some may argue that the proliferation of AOSP operating systems, alongside Android, has helped Google fend off stronger competition from Apple. But for Google, a growing contingent of Android users not utilizing Google services is almost as damaging as Apple grabbing a massive market share. 
With Android One, Google's showing that its biggest concern is no longer Apple. Instead, it is pivoting on its open source ideals and looking to corral the widespread use of forked Android devices in markets where smartphone growth is exploding. 
<a href="https://intelligence.businessinsider.com/why-the-next-apple-or-samsung-will-come-from-india-or-china-2014-3?utm_source=House&amp;utm_medium=Edit&amp;utm_term=M-AOSP-XIaomiCombo-6-26-14&amp;utm_content=link&amp;utm_campaign=BIIMobile" onclick="this.href = this.href + '-' + window.location.search.substr(1).replace(/\&amp;|\=/g, '-');">In a recent report from BI Intelligence</a>, we explain why global consumer internet and mobile companies like Google have no choice but to work with companies like Micromax and Xiaomi as they expand into other nations - not to mention Lenovo, Huawei, ZTE, and Coolpad - if they don't want to miss out on mobile's next growth phase in emerging markets. 
<div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image"><a title_source="BII" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/53a0993c6bb3f776760bc4fd-960/forkedandroids.png"></a>BII</div></div></div>

A New Google Initiative Will Help The Company Protect Against Forked Android Phones

MUMBAI/NEW DELHI: The confusion over venues and match dates, and the change of guard at the Board of Control for Cricket in India (BCCI) is likely to push down sponsorship revenues of Indian Premier League (IPL) team franchises by as much as 20%, making it difficult for them to meet their revenue targets. While the schedule for the first leg of the IPL in the UAE has been finalised, the BCCI is yet to provide a schedule for the rest of the tournament. 
 
A senior executive of a North India-based IPL team said till there is complete clarity on venues and match dates, sponsors are not willing to sign the agreement. “It is hampering the process,” said the executive, requesting anonymity. “I am under a lot stress. I really need to try and close some deals to achieve our target.” 
 
“It is a difficult task to secure sponsorship this year. Talks started a long time back but potential sponsors want to know the final schedule,” said the chief executive of a South India-based IPL team. The twenty20 tournament has gone through a tumultuous phase in the last few months because of the betting and spot-fixing controversy that broke out last year. While the Supreme Court last week allowed the IPL to go ahead unhindered, it replaced cricket board president N Srinivasan with former Indian captain Sunil Gavaskar as incharge of IPL affairs. 
 
The IPL schedule has had to be tweaked as the government refused to provide security at the venues on account of the Lok Sabha elections beginning on April 7. While the first 16 days of the tournament, which starts on April 16, will be played in the UAE, there is still uncertainty over where the rest of the matches will be held. Bangladesh has been kept as a standby venue for the second phase from May 1-12. 
 
BCCI said recently that it has got clearances from various state governments to hold matches in Ahmedabad, Bangalore, Bhubaneswar, Kochi and Visakhapatnam, though no final dates for matches have been announced. “Till such time there is a clear cut understanding of the schedule, it will be difficult to close deals. We usually go by historic data on TRPs to decide on the valuation of a deal,” said Shashin Devsare, executive director at Karbonn Mobile, which has not yet signed a sponsorship deal with any team. “How will we decide TRPs for new venues where IPL matches have never been played?” he asks. 
 
That is the dilemma teams are stuck in. Advertisers usually decide a year in advance. “Following that, they get at least three months before the tournament to plan their advertising around IPL. There is no time this year,” said a senior media planner. 
 
Advertisers such as Pepsi, Idea Cellular, BookMyShow, Garnier, Nokia, Reebok and Aircel have been associated with IPL teams over the last few years. “I can understand the advertisers’ anxiety regarding team and on-ground sponsorship. IPL is a premium property and, therefore, marketers need at least six weeks lead time to plan their advertising around the event. If that is not possible, return on investment could be a huge issue,” said Basabdutta Chowdhury, CEO at Platinum Media, which is a part of Madison Media Group of agencies Two senior media planners from India’s top two media agencies said they anticipated the troubles and have advised their clients to stay away from team and onground sponsorship and to instead invest only in on-air advertising. 
 
“From a short term perspective, there will be a big impact if things remain in flux. But it could be a case of short-term pain for long-term gain,” said Unni Krishnan, managing director of brand consultancy Brand Finance India, referring to the intervention by the Supreme Court. A course correction by the court, said Krishnan, will safeguard the long-term value of the league. 
 
“The way it was going, it was headed for the catastrophic phase,” Krishnan said, adding that sponsorship revenues for franchises could be shaved off by about 15-20% this year. The uncertainty around IPL has also forced some advertisers to pull out of IPL and invest in the ongoing ICC T20 World Cup. Chirantan Chandran, senior principal partner at Dentsu Media India, said, “When the uncertainties with IPL reached its peak, ou r client went ahead to put its kitty in T20 World Cup.”

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