ChinaDroid on a Rampage in Asia (GOOG) (AAPL)
ChinaDroid phones run a modified version of Android Ice Cream Sandwich and offer few cutting-edge technologies and little to no brand equity, but the phones have an appeal that can't be denied... price.
"We expect the 'ChinaDroid' segment to continue its strong momentum in the near future, on the back of an increasingly number of low-income consumers in tier 3/4 cities, those in rural areas, peasant workers in the cities, etc. These segments otherwise can’t afford the thousands of RMB on an iPhone or a Samsung Galaxy phone," said analyst Alan Hellawell III.
According to chatter, Apple is planning to launch a low priced smartphone in the coming quarter which may be targeted specifically toward China's growing market. However, Apple is obviously arriving very late to the game. Deutsche Bank thinks the rise of the ChinaDroid smartphone will lead to sudden revisions in the China unit forecasts for foreign brands. Presumable these brands include Apple, Blackberry (Nasdaq: BBRY), Nokia (NYSE: NOK), and Samsung, as well as other foreign brands.
There is another side of the story, and it involves the multi-billion dollar market for content. China players in this space include Tencent, Baidu (Nasdaq: BIDU), Alibaba, and Qihoo (NYSE: QIHU). With so many devices running on android, presumable Google (Nasdaq: GOOG) will be a big winner. Not so. This is ChinaDroid we're talking about, not Android, and it doesn't play by the rules.
Reports say ChinaDroid is also on the move in other developing nations.