Android phonemakers up upgrade game as premiumisation picks up pace in India

Android: Counterpoint Research data indicates premium smartphone users tend to stick to their devices for 40-44 months, as compared to about 36 months for users of budget smartphones, as devices have become more durable and powerful in terms of processing.

Android phonemakers up upgrade game as premiumisation picks up pace in India
Android phonemakers up upgrade game as premiumisation picks up pace in India, ET Telecom
\"\"
<\/span><\/figcaption><\/figure>New Delhi: Android<\/a> smartphone makers are upping their software update game, with some such as Samsung<\/a>, Xiaomi and Oppo<\/a> promising four years of major Android updates and another year of security updates, instead of the standard two version upgrades, as premiumisation picks up pace in India.

Samsung was the first among Android smartphone makers to announce scaling up of its after-sale software support with four generations of Android updates and five years of security updates across its ecosystem of devices, including smartphones, tablets and smartwatches.

The company&rsquo;s rationale for the move was that many of its customers were choosing to keep their devices for longer, whether they loved their specific smartphone model or wanted to help contribute to a more sustainable world.

Indeed, replacement cycles have increased substantially from about two years earlier as the Indian smartphone market expands to more premium segments.

Counterpoint Research<\/a> data indicates premium smartphone users tend to stick to their devices for 40-44 months, as compared to about 36 months for users of budget smartphones, as devices have become more durable and powerful in terms of processing.

Following Samsung&rsquo;s footsteps, Xiaomi<\/a> and Oppo<\/a> also announced four years of version upgrades and an additional year of security update for their latest flagship models, stopping just short of spreading it across their portfolio for now.

The reason for longer support for only the premium devices is a function of cost economics and what is known as customer life-cycle value, said Tarun Pathak, research director, Counterpoint Research. &ldquo;Obviously, it&rsquo;s built into the device cost, and brands are also working with Google and chipset vendors to make the update process more seamless,&rdquo; he said.

Amid increasing premiumisation in the smartphone market, users are demanding a certain level of security and new features in their devices for the time they use them, industry experts said, adding that brands also see this as an opportunity to monetise the user base for longer.

&ldquo;As people tend to use their devices for longer, brands have a longer time period to monetise them, whether it be through the software, service, accessories or ecosystem. Software updates elongate the life cycle, and the longer someone uses a device, the more is the opportunity for brands to earn revenue from them. This is called CLV or customer life-cycle value,&rdquo; Pathak said. &ldquo;For example, if I have an iPhone<\/a>, I can use it for longer as compared to a three-year old Android phone which won&rsquo;t get any further update and is essentially no longer fresh.&rdquo;

Delivering software updates, however, is a costly affair for Android firms. Industry experts said in a fragmented industry with a diverse supply chain each device needs dedicated resources to push out regular software updates. They said the more devices in the portfolio that firms commit to updating for a longer time period, the more resources they need to deploy.

The firms also have to work with chipset vendors and Google, which deliver the base firmware and the open-source Android codebase respectively. Both parties have put in significant work over the years to simplify the update process, by creating a modular base that is common across devices.

&ldquo;All these brands have their own UI (user interfaces). They built these custom interfaces for monetisation and, of course, there are other features and experiences. So, when you want to update and upgrade every device in your portfolio, you have to rework the whole UI for them,&rdquo; said Lava<\/a> managing director Sunil Raina. &ldquo;That will require significant resources. There&rsquo;s more work to do. And, therefore, it takes time, effort and money. Therefore, sometimes they will do it, sometimes not.&rdquo;

Brands have a higher inclination to support their flagship phones with software updates for longer, because they have a higher profit margin, he said, adding, &ldquo;For a phone priced at Rs 10,000, the additional effort is not worth it.&rdquo;

But Lava is taking a different approach. It has refrained from adding a customised UI layer on top of the basic Android interface that Google ships. As a result, the company is able to support its premium range (priced around Rs 20,000) with two Android version upgrades, and its budget devices with one version upgrade, along with quarterly security patches and bug fixes
<\/body>","next_sibling":[{"msid":105591565,"title":"Poco M6 Pro 5G new variant launched in India: Price, specs and more","entity_type":"ARTICLE","link":"\/news\/devices\/poco-m6-pro-5g-new-variant-launched-in-india-price-specs-and-more\/105591565","category_name":null,"category_name_seo":"devices"}],"related_content":[],"seoschemas":false,"msid":105593738,"entity_type":"ARTICLE","title":"Android phonemakers up upgrade game as premiumisation picks up pace in India","synopsis":"Counterpoint Research data indicates premium smartphone users tend to stick to their devices for 40-44 months, as compared to about 36 months for users of budget smartphones, as devices have become more durable and powerful in terms of processing.","titleseo":"devices\/android-phonemakers-up-upgrade-game-as-premiumisation-picks-up-pace-in-india","status":"ACTIVE","authors":[{"author_name":"Subhrojit Mallick","author_link":"\/author\/479244756\/subhrojit-mallick","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479244756.cms?width=250&height=250&imgsize=13404","author_additional":{"thumbsize":true,"msid":479244756,"author_name":"Subhrojit Mallick","author_seo_name":"Subhrojit-Mallick","designation":"Correspondent","agency":false}}],"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2023-11-29 16:25:11","lastupd":"2023-11-29 16:25:12","breadcrumbTags":["android","xiaomi and oppo","xiaomi","samsung","iphone","counterpoint research","oppo","lava"],"secinfo":{"seolocation":"devices\/android-phonemakers-up-upgrade-game-as-premiumisation-picks-up-pace-in-india"}}" data-authors="[" subhrojit data-category-name="Devices" data-category_id="12" data-date="2023-11-29" data-index="article_1" readability="27.036513095011">

Counterpoint Research data indicates premium smartphone users tend to stick to their devices for 40-44 months, as compared to about 36 months for users of budget smartphones, as devices have become more durable and powerful in terms of processing.

Subhrojit Mallick
  • Updated On Nov 29, 2023 at 04:25 PM IST
New Delhi: Android smartphone makers are upping their software update game, with some such as Samsung, Xiaomi and Oppo promising four years of major Android updates and another year of security updates, instead of the standard two version upgrades, as premiumisation picks up pace in India.

Samsung was the first among Android smartphone makers to announce scaling up of its after-sale software support with four generations of Android updates and five years of security updates across its ecosystem of devices, including smartphones, tablets and smartwatches.

The company’s rationale for the move was that many of its customers were choosing to keep their devices for longer, whether they loved their specific smartphone model or wanted to help contribute to a more sustainable world.

Indeed, replacement cycles have increased substantially from about two years earlier as the Indian smartphone market expands to more premium segments.

Counterpoint Research data indicates premium smartphone users tend to stick to their devices for 40-44 months, as compared to about 36 months for users of budget smartphones, as devices have become more durable and powerful in terms of processing.

Following Samsung’s footsteps, Xiaomi and Oppo also announced four years of version upgrades and an additional year of security update for their latest flagship models, stopping just short of spreading it across their portfolio for now.

The reason for longer support for only the premium devices is a function of cost economics and what is known as customer life-cycle value, said Tarun Pathak, research director, Counterpoint Research. “Obviously, it’s built into the device cost, and brands are also working with Google and chipset vendors to make the update process more seamless,” he said.

Amid increasing premiumisation in the smartphone market, users are demanding a certain level of security and new features in their devices for the time they use them, industry experts said, adding that brands also see this as an opportunity to monetise the user base for longer.

“As people tend to use their devices for longer, brands have a longer time period to monetise them, whether it be through the software, service, accessories or ecosystem. Software updates elongate the life cycle, and the longer someone uses a device, the more is the opportunity for brands to earn revenue from them. This is called CLV or customer life-cycle value,” Pathak said. “For example, if I have an iPhone, I can use it for longer as compared to a three-year old Android phone which won’t get any further update and is essentially no longer fresh.”

Delivering software updates, however, is a costly affair for Android firms. Industry experts said in a fragmented industry with a diverse supply chain each device needs dedicated resources to push out regular software updates. They said the more devices in the portfolio that firms commit to updating for a longer time period, the more resources they need to deploy.

The firms also have to work with chipset vendors and Google, which deliver the base firmware and the open-source Android codebase respectively. Both parties have put in significant work over the years to simplify the update process, by creating a modular base that is common across devices.

“All these brands have their own UI (user interfaces). They built these custom interfaces for monetisation and, of course, there are other features and experiences. So, when you want to update and upgrade every device in your portfolio, you have to rework the whole UI for them,” said Lava managing director Sunil Raina. “That will require significant resources. There’s more work to do. And, therefore, it takes time, effort and money. Therefore, sometimes they will do it, sometimes not.”

Brands have a higher inclination to support their flagship phones with software updates for longer, because they have a higher profit margin, he said, adding, “For a phone priced at Rs 10,000, the additional effort is not worth it.”

But Lava is taking a different approach. It has refrained from adding a customised UI layer on top of the basic Android interface that Google ships. As a result, the company is able to support its premium range (priced around Rs 20,000) with two Android version upgrades, and its budget devices with one version upgrade, along with quarterly security patches and bug fixes

  • Published On Nov 29, 2023 at 04:25 PM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETTelecom App

  • Get Realtime updates
  • Save your favourite articles
Scan to download App
\"\"
<\/span><\/figcaption><\/figure>New Delhi: Android<\/a> smartphone makers are upping their software update game, with some such as Samsung<\/a>, Xiaomi and Oppo<\/a> promising four years of major Android updates and another year of security updates, instead of the standard two version upgrades, as premiumisation picks up pace in India.

Samsung was the first among Android smartphone makers to announce scaling up of its after-sale software support with four generations of Android updates and five years of security updates across its ecosystem of devices, including smartphones, tablets and smartwatches.

The company&rsquo;s rationale for the move was that many of its customers were choosing to keep their devices for longer, whether they loved their specific smartphone model or wanted to help contribute to a more sustainable world.

Indeed, replacement cycles have increased substantially from about two years earlier as the Indian smartphone market expands to more premium segments.

Counterpoint Research<\/a> data indicates premium smartphone users tend to stick to their devices for 40-44 months, as compared to about 36 months for users of budget smartphones, as devices have become more durable and powerful in terms of processing.

Following Samsung&rsquo;s footsteps, Xiaomi<\/a> and Oppo<\/a> also announced four years of version upgrades and an additional year of security update for their latest flagship models, stopping just short of spreading it across their portfolio for now.

The reason for longer support for only the premium devices is a function of cost economics and what is known as customer life-cycle value, said Tarun Pathak, research director, Counterpoint Research. &ldquo;Obviously, it&rsquo;s built into the device cost, and brands are also working with Google and chipset vendors to make the update process more seamless,&rdquo; he said.

Amid increasing premiumisation in the smartphone market, users are demanding a certain level of security and new features in their devices for the time they use them, industry experts said, adding that brands also see this as an opportunity to monetise the user base for longer.

&ldquo;As people tend to use their devices for longer, brands have a longer time period to monetise them, whether it be through the software, service, accessories or ecosystem. Software updates elongate the life cycle, and the longer someone uses a device, the more is the opportunity for brands to earn revenue from them. This is called CLV or customer life-cycle value,&rdquo; Pathak said. &ldquo;For example, if I have an iPhone<\/a>, I can use it for longer as compared to a three-year old Android phone which won&rsquo;t get any further update and is essentially no longer fresh.&rdquo;

Delivering software updates, however, is a costly affair for Android firms. Industry experts said in a fragmented industry with a diverse supply chain each device needs dedicated resources to push out regular software updates. They said the more devices in the portfolio that firms commit to updating for a longer time period, the more resources they need to deploy.

The firms also have to work with chipset vendors and Google, which deliver the base firmware and the open-source Android codebase respectively. Both parties have put in significant work over the years to simplify the update process, by creating a modular base that is common across devices.

&ldquo;All these brands have their own UI (user interfaces). They built these custom interfaces for monetisation and, of course, there are other features and experiences. So, when you want to update and upgrade every device in your portfolio, you have to rework the whole UI for them,&rdquo; said Lava<\/a> managing director Sunil Raina. &ldquo;That will require significant resources. There&rsquo;s more work to do. And, therefore, it takes time, effort and money. Therefore, sometimes they will do it, sometimes not.&rdquo;

Brands have a higher inclination to support their flagship phones with software updates for longer, because they have a higher profit margin, he said, adding, &ldquo;For a phone priced at Rs 10,000, the additional effort is not worth it.&rdquo;

But Lava is taking a different approach. It has refrained from adding a customised UI layer on top of the basic Android interface that Google ships. As a result, the company is able to support its premium range (priced around Rs 20,000) with two Android version upgrades, and its budget devices with one version upgrade, along with quarterly security patches and bug fixes
<\/body>","next_sibling":[{"msid":105591565,"title":"Poco M6 Pro 5G new variant launched in India: Price, specs and more","entity_type":"ARTICLE","link":"\/news\/devices\/poco-m6-pro-5g-new-variant-launched-in-india-price-specs-and-more\/105591565","category_name":null,"category_name_seo":"devices"}],"related_content":[],"seoschemas":false,"msid":105593738,"entity_type":"ARTICLE","title":"Android phonemakers up upgrade game as premiumisation picks up pace in India","synopsis":"Counterpoint Research data indicates premium smartphone users tend to stick to their devices for 40-44 months, as compared to about 36 months for users of budget smartphones, as devices have become more durable and powerful in terms of processing.","titleseo":"devices\/android-phonemakers-up-upgrade-game-as-premiumisation-picks-up-pace-in-india","status":"ACTIVE","authors":[{"author_name":"Subhrojit Mallick","author_link":"\/author\/479244756\/subhrojit-mallick","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479244756.cms?width=250&height=250&imgsize=13404","author_additional":{"thumbsize":true,"msid":479244756,"author_name":"Subhrojit Mallick","author_seo_name":"Subhrojit-Mallick","designation":"Correspondent","agency":false}}],"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2023-11-29 16:25:11","lastupd":"2023-11-29 16:25:12","breadcrumbTags":["android","xiaomi and oppo","xiaomi","samsung","iphone","counterpoint research","oppo","lava"],"secinfo":{"seolocation":"devices\/android-phonemakers-up-upgrade-game-as-premiumisation-picks-up-pace-in-india"}}" data-news_link="https://telecom.economictimes.indiatimes.com/news/devices/android-phonemakers-up-upgrade-game-as-premiumisation-picks-up-pace-in-india/105593738">

What's Your Reaction?

like

dislike

love

funny

angry

sad

wow

main writer of breakingnews.co.id