Google is a search powerhouse, and with Android, it leads the mobile ecosystem in most parts of the world. It has even tried becoming the Apple of Android with its Pixel flagship phones, but let’s be honest, the strategy hasn’t worked out for it yet.
Which is why, when a Reuters report from earlier this month is interesting. The report highlighted that the search giant is poaching engineers from Qualcomm and Intel to build its army that will be making chipsets for phones in-house. The bigger news is the team, comprising of 16 people will work out of Bengaluru in India.
Considering India’s growth potential in the smartphone space, it makes sense for Google to set up its shop in the country, instead of everyone’s favourite China.
Making chipsets in-house will have a direct impact on Qualcomm and Intel’s business with phone makers, something that even Apple is planning from 2020 onwards. Qualcomm with its Snapdragon processors has a dominant position in the premium and even the mid-range segment to a certain extent.
Brands like OnePlus, Samsung and Google among others have thrived with its business but the cost of buying a processor for every device bears heavily on the end consumer.
Taking Samsung and Huawei’s cue, Google could benefit from its own processor, bringing down the prices of the future Pixel phone and other mid-range devices, even the smart speakers for that matter.
As per a market report by Techarc, Qualcomm is poised to further consolidate its strong market position with major Smartphone OEMs preferring it over competition in all the growing market segments of smartphones in the country.
Interestingly, the same report points out the maximum number of smartphone models launched (42.2 percent) were powered by Mediatek processors. And Qualcomm even with a share of 38.6 percent managed to rake up the numbers as the volume-selling OEMs were in its kitty.
Now imagine a situation where Apple and Google along with Samsung and Huawei use their own processors. The future will definitely paint a bleak picture for the chipset giant.
Hardware-Software Control Gets Better
Even without making its own chipset, Apple has kept a control on how the hardware of its devices behaves with the software. When Google started selling the Pixel series, it had similar intentions and even though it has worked out at the core level, the product hasn’t scaled up the heights.
Making the chipset in India, will work to the country’s benefit, with projects like Make in India and Digital India looking to push the case for local manufacturing.
This is likely to spark interest among India-based brands, who might want to partner with Google and probably change their fortunes, which has taken a nosedive ever since the Chinese invasion hit the Indian mobile market few years back.
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)