The Bladerunner

Now there’s a common thread in all these launches. They are all based on the revolutionary Android, the new open-source operating system (the software that runs the mobile phone), which is fast becoming the poster boy of the mobile industry in India.

Android is not just any new kid on the block. In less than three years, it’s pushed market leader Symbian (Nokia) into a corner. It’s also giving Apple, which defines the rules of the game, a run for its money. Dell founder Michael Dell recently said Android will become a bigger force in the tablet market than Apple. Dell recently made an entry into the mobile phones market in India with four phones. Three of them run on Android.

Dell’s optimism stems from Android’s stupendous global growth in the past two years. From relative anonymity in 2009 (global marketshare 3.9 per cent), Android today accounts for 40 per cent of the market, dethroning Symbian. India will be no different, say experts. “There are more Android phones in retail as compared to six months ago. India is the fastest growing market in telecom. Its reflection will be seen in Android as more low-cost devices enter the market,” says Jaideep Ghosh, ED, KPMG.

Other operating systems, like Blackberry and Samsung, have small numbers. Samsung, in fact, has its own operating system, Bada, but is leading the pack of handset makers pushing Android. Says Ranjeet Yadav, country head, mobile and IT, Samsung India: “We have taken it upon us to grow this category. We are also putting in our bit developing India-specific applications. The fact that the Android market is available in Indian rupees is a big advantage.”

So, what’s so special about Android?, Well, launched in November ’07, it’s owned by Google and is based on Linux and is an open-source operating system. Its biggest advantage is that it is free, allows users to customise their phones to use only those applications they want in their phones. This is in contrast to existing systems where the phone menu is fixed. And with Google’s PC operating system, Chrome OS, due in the near future, seamless integration of all data between PC-phone will be a reality.

One of Android’s most attractive features is its application universe called Android Market (apps are programs with web user interface). Although inspired by Apple’s iTunes and applications market, it is one of the most vibrant and fast-growing features in Android. As of March, there were 1,50,000 apps on Android market, which could be downloaded on the phone either free or for a modest fee. Although this pales before Apple’s over 3,50,000 apps, sales in India are small. Android, in contrast, is growing faster and is already way above other competitors.

No wonder the software developer community is upbeat about Android. In India too, there is huge developer interest. Says Rohith Bhat, CEO, Robosoft Technologies, which specialises in developing mobile phone apps: “This is the new internet. This is year 2000 happening all over again. Since the Android source code is available, we are developing a layer on top of that to suit Indian companies and users.” His company has developed many Android applications, including the NDTV app and a few on cricket.

The app-store concept has been a big boon for small developers, who can now develop new applications and publish directly on Android. Earlier, most of their software could not reach consumers because the proprietary companies did not approve of them. Also, Android gives them better returns. A large number of Android apps are now being developed in India in games, travel and media. Says Pavan Chaddha, country head, Sony Ericsson: “Android apps provide a native development interface that allows local developers to easily integrate into the Android ecosystem.”

The good news for users is that Android phones are becoming cheaper. Micromax, which redefined mobile pricing in India, launched its Android-based phone A-60 at under Rs 7,000. The company says it sold out its stock in four hours. Says Rahul Sharma, founder and ED, Micromax: “Android will be a big strategy for us. The maximum use of GPRS and EDGE is happening in B and C category towns like Lucknow, Hubli and Kanpur.” Even smaller players who operate primarily in these circles are converting. Intex, for one, is ready with an Android tablet, which, company sources say, will be priced at around Rs 15,000.

However, analysts also feel the openness could prove to be a stumbling block. Says Prasanto K. Roy, technology expert and chief editor, Cyber Media, “You don’t have a clear agreement on smartphone specifications and each one is doing its own thing. Earlier, it was data support and applications, now everyone is different.” This may make it difficult for developers to design specific applications. Bhat agrees, “Everybody is modifying the operating system, so there is no reference model for developers to work on.”

Analysts feel Nokia’s recent tie-up with Windows Phone 7 to replace Symbian is a desperate move to take on Android. India is the last big market for Nokia and it has been consistently losing marketshare here. But with Windows Phone 7 seeing little growth, it might find it difficult to catch up with the popularity and growth Android is seeing. KPMG’s Ghosh, however, differs, “The combination of the world’s largest handset maker and Windows, which is way ahead in the operating system space, can pose a serious challenge to Android.” Technology moves in mysterious ways. But for now, this battle is Android’s to lose.

The Android Attraction

This free operating system for smart mobile phones is the Next Big Thing in India

The Basics

• Android is customisable by users, allows many apps (software accessible via the Net) at the same time, multiple home screens
• Android not restricted to one company, allows users to choose their hardware
• Localised, customised content is increasing adoption in India
• Biggest competitor Symbian on the decline. Nokia has tied up with Windows to stem the rot.

Developers’ Paradise

• Android already has 1,50,000 apps, many developed specifically for India
• Developers boom in India, driven by higher returns and hardware independence

“The app store is a boon for developers. It’s the new Internet. It’s year 2000 all over again.”

Rohith Bhat, Robosoft Technologies

Choice, Prices

• Samsung, HTC, Motorola, LG and Sony Ericsson are pushing Android phones
• Smaller Indian firms—like Micromax, Intex, Olive—to launch 15 Android-based phones this year
• This will drive prices down to Rs 5,000 level, pushing mass use of Android

Global Growth…

…Mirrored In India

• 10% of the handset marketshare by smartphones
• 6 out of every 10 smartphones sold in India runs on Android
• 35% growth in smartphones in Q3 2010 (over Q2)
• 300% growth in smartphones in Q3 2010 (over a year ago)