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Can Xiaomi knock Samsung-Apple out of the smartphone market?

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Javed Anwer
Javed AnwerMay 28, 2015 | 15:13

Can Xiaomi knock Samsung-Apple out of the smartphone market?

It's hard to overstate the importance of a good smartphone. In a world where there is no difference between virtual and real, a good smartphone is almost a necessity. Unfortunately, until six months ago buying a good smartphone meant spending a fortune, something that majority of Indian consumers couldn't afford to do.

But of late, there is a remarkable change in the market, a change almost led not by the big companies like Samsung or LG but by Indian and Chinese firms. Buoyed by the power and flexibility of Android operating system, which has been created and maintained by Google, companies like Micromax and Xiaomi are beating biggies black and blue by offering phones that cost a fraction of the iPhone 6 or the Galaxy S6 price.

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Most consumers in India are still unfamiliar with names like OnePlus One, Asus, Yu or even Xiaomi. But the fact the these companies exist and are doing roaring business is a great news.

The budget smartphones, which cost less than ten thousand rupees, have become so good nowadays that it doesn't make much sense to buy a Rs 50,000 iPhone or the Galaxy S6. Almost everything that a user requires - emails, access to chat apps, Facebook, a functional and fast web browser - is available in Micromax Yu Yuphoria or a Motorola Moto E, both of which cost around seven thousand rupees.

There are two factors responsible for making sure that despite their low cost, the quality and functionality of smartphones sold by companies like Xiaomi and Motorola is good enough. These two factors are Android and the Chinese factories.

Android and China's manufacturing prowess have been great leveller. In the old days, creating a smartphone meant coming up with unique software each time a company wanted to launch something new. It also meant deploying teams of software engineers and doing research and development work that would take considerable resources and time. This is the kind of work that only big companies could do well. Hence there was a perception, rightly so, that a Samsung or a Nokia phone was better than something made by a no-name company in China or India.

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But Android changed that. Now, almost all smartphone companies have access to the same software and same quality of code. The heavy lifting when it comes to software is the responsibility that Google bears. In simple words, this mean that the smartphones that cost Rs 50,000 use the same software that goes into a five-thousand-rupees-smartphone.

The manufacturing too plays its part. Everything nowadays is made in China and while it is true that the quality control at assembly lines making the iPhones is probably more strict, the making of a smartphone has become so commoditised that the difference between the best and the good enough is almost negligible.

It won't be out of place to say that Android, which is owned by a very powerful and almost monopolistic firm, and Chinese factories have, ironically, democratised the smartphone market and consequently how people share and consume information.

The presence of good low-cost phones does not mean the expensive phones don't make any sense anymore. The expensive phones still are much better built, have better cameras and in most cases better screens. But what budget phones nowadays give are more than enough for most consumers.

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This also opens up the whole smartphone arena in a wonderful way. The fact that a consumer can buy a seven-thousand-rupees-smartphone and get access to internet at 4G speeds, a decent camera and see the real time map information is plain amazing. In a country like India, where most people still don't have access to a computer, it has the potential to change the world in a big big way.

Last updated: May 28, 2015 | 15:13
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