Comments on: Low cost Android: crossing the $100 barrier http://www.visionmobile.com/blog/2010/02/low-cost-android-crossing-the-100-barrier/?utm_source=rss&utm_medium=rss&utm_campaign=low-cost-android-crossing-the-100-barrier Distilling market noise into market sense. Mon, 06 Sep 2010 09:00:45 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Alex Neuenfeld http://www.visionmobile.com/blog/2010/02/low-cost-android-crossing-the-100-barrier/comment-page-1/#comment-68389 Alex Neuenfeld Sun, 18 Apr 2010 18:24:33 +0000 http://www.visionmobile.com/blog/?p=1335#comment-68389 Of course we want low cost Android. But we want it in a full featured handset or netbook / tablet, not in some flimsy "feature phone". The promise of the 100$-laptop has been here for a long while now, since OLPC first annouced it. The cost of hardware will hopefully go down and we will see a really nice device for the people. Charbax from armdecices.net has already put his hands on a $95 10″ Android VIA-ARM powered laptop. http://armdevices.net/2010/04/16/i-would-have-liked-to-video-blog-at-hong-kong-and-shenzhen-fairs/ Of course we want low cost Android. But we want it in a full featured handset or netbook / tablet, not in some flimsy “feature phone”. The promise of the 100$-laptop has been here for a long while now, since OLPC first annouced it. The cost of hardware will hopefully go down and we will see a really nice device for the people.

Charbax from armdecices.net has already put his hands on a $95 10″ Android VIA-ARM powered laptop.
http://armdevices.net/2010/04/16/i-would-have-liked-to-video-blog-at-hong-kong-and-shenzhen-fairs/

]]> By: Lars Kamp http://www.visionmobile.com/blog/2010/02/low-cost-android-crossing-the-100-barrier/comment-page-1/#comment-68178 Lars Kamp Fri, 12 Feb 2010 18:35:50 +0000 http://www.visionmobile.com/blog/?p=1335#comment-68178 Ben, A very refreshing view on Android's potential to penetrate the feature phone segments. A question that I have - you mention Android's potential to become "the" standardized platform for operators. I follow and agree on your logic, but for that to happen, wouldn't OEMs need to make the decision to solely focus on Android? Apart from Motorola I do not see that happening right now. From my conversations with OEMs I got the feedback that there is an inherent fear that Google might become too powerful, and while all Tier-1 OEMs except for Nokia have Chassis 1 and Chassis 2 Android devices, all of them (except MOTO) are still running multiple platforms, and consistency is achieved through a single UI. Sony Ericsson is probably a good example with their Rachael UI. Having said that, with the virtualization approach you describe, I agree you could bring Smartphones to the masses, particularly in countries like China and India. It would be interesting to see how Google then could figure out to monetize those markets. Lars Ben,

A very refreshing view on Android’s potential to penetrate the feature phone segments.

A question that I have – you mention Android’s potential to become “the” standardized platform for operators. I follow and agree on your logic, but for that to happen, wouldn’t OEMs need to make the decision to solely focus on Android? Apart from Motorola I do not see that happening right now.

From my conversations with OEMs I got the feedback that there is an inherent fear that Google might become too powerful, and while all Tier-1 OEMs except for Nokia have Chassis 1 and Chassis 2 Android devices, all of them (except MOTO) are still running multiple platforms, and consistency is achieved through a single UI. Sony Ericsson is probably a good example with their Rachael UI.

Having said that, with the virtualization approach you describe, I agree you could bring Smartphones to the masses, particularly in countries like China and India. It would be interesting to see how Google then could figure out to monetize those markets.

Lars

]]> By: Greg Sandy http://www.visionmobile.com/blog/2010/02/low-cost-android-crossing-the-100-barrier/comment-page-1/#comment-68168 Greg Sandy Tue, 09 Feb 2010 18:42:20 +0000 http://www.visionmobile.com/blog/?p=1335#comment-68168 Hi Ben, I think that the android platform is definatley more appealing to the operators than the users. Customizing and preloading apps to target a market segment, makes more sense for them. As a user, I won't buy a phone, thinking that I may be able to get "an app for that". That may come later in the experience, as with the iphone, and all the stupid apps they sell. My phone, better open and edit word and excel docs, and view pdfs. Also, I need push mail and the ability to run multiple IM programs. Cost is not as relevant here in the states, as most all providers subsidize phones for contracts. I just bought a BB 9700 for $147 with a 2 year contract, it would have been $450 without said contract. Single priced unlimited data leaves very few opportunities to increase revenue, outside of apps and customization. To me the android is a perfect platform for a provider/operator to realize their version of a killer app phone, by somehow customizing, and managing a marketing message to the target. Hi Ben,
I think that the android platform is definatley more appealing to the operators than the users. Customizing and preloading apps to target a market segment, makes more sense for them. As a user, I won’t buy a phone, thinking that I may be able to get “an app for that”. That may come later in the experience, as with the iphone, and all the stupid apps they sell. My phone, better open and edit word and excel docs, and view pdfs. Also, I need push mail and the ability to run multiple IM programs.

Cost is not as relevant here in the states, as most all providers subsidize phones for contracts. I just bought a BB 9700 for $147 with a 2 year contract, it would have been $450 without said contract. Single priced unlimited data leaves very few opportunities to increase revenue, outside of apps and customization.

To me the android is a perfect platform for a provider/operator to realize their version of a killer app phone, by somehow customizing, and managing a marketing message to the target.

]]> By: Michael Vakulenko http://www.visionmobile.com/blog/2010/02/low-cost-android-crossing-the-100-barrier/comment-page-1/#comment-68167 Michael Vakulenko Tue, 09 Feb 2010 09:30:40 +0000 http://www.visionmobile.com/blog/?p=1335#comment-68167 Yes, absolutely, operators are playing key role here. Average consumer may not care about apps when buying low-cost touchscreen phone. However, once the phone is in their hands, many are asking: "What else can I do with this thing?". This is where Android apps and, not to forget, Android HTML5 web browser are getting into play, creating post-sale revenue opportunities for operators. IMHO, this is relative advantage Android has over other feature phones solutions. Yes, absolutely, operators are playing key role here.

Average consumer may not care about apps when buying low-cost touchscreen phone. However, once the phone is in their hands, many are asking: “What else can I do with this thing?”.

This is where Android apps and, not to forget, Android HTML5 web browser are getting into play, creating post-sale revenue opportunities for operators.

IMHO, this is relative advantage Android has over other feature phones solutions.

]]> By: Ben Hookway http://www.visionmobile.com/blog/2010/02/low-cost-android-crossing-the-100-barrier/comment-page-1/#comment-68166 Ben Hookway Tue, 09 Feb 2010 08:39:10 +0000 http://www.visionmobile.com/blog/?p=1335#comment-68166 Hi Gabriel, Glad you enjoyed the article. Not sure what you mean with the Nokia reference. I didn't set out to describe Nokia - honestly! Ben Hi Gabriel,

Glad you enjoyed the article. Not sure what you mean with the Nokia reference. I didn’t set out to describe Nokia – honestly!

Ben

]]> By: Ben Hookway http://www.visionmobile.com/blog/2010/02/low-cost-android-crossing-the-100-barrier/comment-page-1/#comment-68165 Ben Hookway Tue, 09 Feb 2010 08:38:13 +0000 http://www.visionmobile.com/blog/?p=1335#comment-68165 Hi David, Thanks for the comments. I agree with much of what you say. The OEMs with mature, internally developed application frameworks (Nokia, Samsung, LGE) don't have a compelling reason to move to Android at the low end. They are expert at producing a high number of feature phone models with software they know well. However, for some other companies with either less suitable software frameworks, or less software expertise, Android may prove an attractive path if the BOM could be achieved. Motorola, with their extensive investment in Android and and aging P2K feature phone platform could be a candidate here. Pure speculation on my part though. Best, Ben Hi David, Thanks for the comments. I agree with much of what you say. The OEMs with mature, internally developed application frameworks (Nokia, Samsung, LGE) don’t have a compelling reason to move to Android at the low end. They are expert at producing a high number of feature phone models with software they know well.

However, for some other companies with either less suitable software frameworks, or less software expertise, Android may prove an attractive path if the BOM could be achieved.

Motorola, with their extensive investment in Android and and aging P2K feature phone platform could be a candidate here. Pure speculation on my part though.

Best, Ben

]]> By: Gabriel Brown http://www.visionmobile.com/blog/2010/02/low-cost-android-crossing-the-100-barrier/comment-page-1/#comment-68158 Gabriel Brown Mon, 08 Feb 2010 12:30:28 +0000 http://www.visionmobile.com/blog/?p=1335#comment-68158 Good read. Thanks. What you're describing sounds rather like a Nokia, no? Good read. Thanks.

What you’re describing sounds rather like a Nokia, no?

]]> By: David Almstrom http://www.visionmobile.com/blog/2010/02/low-cost-android-crossing-the-100-barrier/comment-page-1/#comment-68155 David Almstrom Sun, 07 Feb 2010 19:17:11 +0000 http://www.visionmobile.com/blog/?p=1335#comment-68155 Ben points out a really interesting thing which really is the million-dollar question whether or not Android is relevant in the low-cost segment*. "Would the buyers of the non-touch devices care or even know? I would contend that the consumers that buy low-cost devices over the next 2-3 years won’t care about the apps. If the consumer wants a mid-low price touchscreen phone then there are a wide number of feature phones available" And therefore, all the work taking Android there may be in vain. In the segment of low-cost in the developed markets are mainly controlled by Nokia, Samsung and LGE with now 70% world-market share and even large in the low cost segments outside India/China and a break-in there for Android devices would be by operator branded phones or new brands - and that is far more difficult than getting Android running on an ARM11 baseband with a virtualized linux kernel. *Low cost for me is not a BOM cost of $100 but rather hitting the $40-60 BOM, which requires a single-core baseband solution - and at least for the foreseeable future. Ben points out a really interesting thing which really is the million-dollar question whether or not Android is relevant in the low-cost segment*.

“Would the buyers of the non-touch devices care or even know?

I would contend that the consumers that buy low-cost devices over the next 2-3 years won’t care about the apps. If the consumer wants a mid-low price touchscreen phone then there are a wide number of feature phones available”

And therefore, all the work taking Android there may be in vain. In the segment of low-cost in the developed markets are mainly controlled by Nokia, Samsung and LGE with now 70% world-market share and even large in the low cost segments outside India/China and a break-in there for Android devices would be by operator branded phones or new brands – and that is far more difficult than getting Android running on an ARM11 baseband with a virtualized linux kernel.

*Low cost for me is not a BOM cost of $100 but rather hitting the $40-60 BOM, which requires a single-core baseband solution – and at least for the foreseeable future.

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