Google Inc. share price down, launches the $105 Android One smartphone in India to expand reach

Google Inc. launched a new line of affordable smartphones on Monday in India. The Android One – a low-cost device capable of Internet access, is aimed at persuading more people in the fastest-growing smartphone market, as well as other emerging markets, to upgrade their handsets.

Mr. Sundar Pichai, senior vice president of Google said in a statement cited by Bloomberg: “We expect India to be the second largest Internet market by 2017. And it’s happening due to mobile.” As reported by the Wall Street Journal, he also added: “The pace at which users are adopting the Internet is unprecedented. Almost all of this growth that is happening in India and the world is due to mobile (phones).”

Vice President Caesar Sengupta said at a press conference in New Delhi that the smartphone is featuring a MediaTek Inc. quad-core processor and a 4.5-inch screen. According to his statement, the device is planned to be released at the price of 6 399 rupees ($105).

Google said that the phones will be made by Micromax Informatics Ltd., Karbonn Mobiles India Pvt and Spice Mobility Ltd, and will be available for online purchases on the Indian website of Amazon.com Inc., as well as at Snapdeal.com and Flipkart Online Services Pvt.

Currently more than one billion customers use phones which operate under Googles Android operating system. The release of the new Google platform is part of the companys strategy to expand its reach to more customers and tap Indias expanding market. In addition, with its Android One, Google is trying to improve hardware and software quality by providing handset manufacturers with a frame of reference. Moreover, strong sales of the new products in India would broaden the access to Internet, and respectively, will spur a wider usage of the companys products.

Google Inc. lost 0.99% to trade at $569.93 per share at 14:59 GMT on the NASDAQ. The company is valued at $392.48 billion. According to CNN Money, the 42 analysts offering 12-month price forecasts for Google Inc have a median target of $670.00, with a high estimate of $750.00 and a low estimate of $570.00.