The Zenfone 4 and Zenfone 5 have sold considerably well in India, and Asus (TPE:2357) is now looking to continue that momentum this year with the launch of its latest handset, the Zenfone 2. Announced at the Consumer Electronics Show in January, the Zenfone 2 grabbed headlines in the tech community as being the first device to feature an astounding 4GB RAM.

Launched in Taiwan in the month of March for what amounts to $295, the 4GB variant (ZE551ML) features great hardware for the price, including a 5.5-inch full-HD display, Intel’s quad-core 2.3GHz Atom Z3580 CPU, 64GB internal memory, microSD slot, dual SIM and LTE connectivity and a 13MP camera at the back along with a 5MP front camera and 3,000mAh battery. Software-wise, the Zenfone 2 features the latest version of Android 5.0 with Asus’ Zen UI rounding off the customizations.

While devices such as the Zenfone 2 are highly anticipated in Western countries, in India, the handset will encounter fierce competition from the likes of Lenovo (HKG:0992), Xiaomi and Huawei, all of whom offer stellar hardware at an affordable price. The differentiator for Asus, at least in India, will be the 4GB ZE551ML variant, which will make it the first device to offer that much memory.

In terms of hardware, the Zenfone 2 is up there with the likes of Xiaomi’s Mi Note, which the Chinese vendor has dubbed the “best smartphone available today.” Xiaomi has become a force to reckon with in India, but Asus has also enjoyed a healthy dose of attention from consumers with its budget offerings. Furthermore, the brushed metal design of the Zenfone 2 looks far more polished than the glass back on offer with the Mi Note. Pricing may also turn out to be a factor that determines the fate of either device in the country, with Xiaomi already showing that it can offer its products for as low as what they are available in China.

There isn’t an exact launch date mentioned for the Zenfone 2 in India, but it should be making its debut sometime before the end of the month. Along with the 4GB model, there will be several affordable options that offer 2GB RAM and a lower resolution screen.

The post Asus Zenfone 2 To Launch In India By The End Of April appeared first on VR World.

Xiaomi is looking to expand its presence in India with the launch of 100 experience stores across the country later this year. The centers will allow prospective customers to get a hands-on look at all the products Xiaomi has to offer.

No devices will be sold at the stores, with Xiaomi stating that it will continue to sell products exclusively through Flipkart. There was talk of Xiaomi starting its own e-commerce portal, with the vendor set to reveal its plans at a later stage.

Xiaomi is also set to create manufacturing facilities in India, where the vendor will assemble the devices that will go on sale locally. Currently, all Xiaomi products are imported from China, but in the next 12 to 18 months, the manufacturer is looking to assemble handsets within the country. Xiaomi will also be looking to sell products assembled in India in neighboring countries as it looks to continue its global expansion.

Along with manufacturing facilities, Xiaomi is building an R&D division in India that will deliver an ecosystem of content and services tailored to customers located within the country.

The move to launch offline experience centers is a way to get more users to get some hands-on time with Xiaomi products, and to also dispel the negative image most consumers have with regard to Chinese vendors, which were notorious for selling low-quality knock-offs in the Indian market a few years ago. The centers will also offer service and support for Xiaomi’s devices.

Xiaomi is not the only vendor looking to increase its presence in India, as Motorola has also announced that it will also be launching similarly-themed experience stores in the country this year.

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Indian manufacturer Micromax’s wholly-owned subsidiary Yu Televentures has started teasing its second handset, codenamed Project Caesar. The handset is set to launch sometime next month, and will continue to offer CyanogenMod out of the box following an exclusive partnership between the two companies in India.

In the teaser, Yu says, “Stay tuned, the fYUture is coming!” followed by an image of a lollipop and a finger of KitKat, with the tagline, “KitKat in the age of Lollipop? Give Me a break.”

The Me stylization is a reference to Xiaomi’s Mi branding in India, and the remark is concerning the fact that MIUI 6 — the latest version of the operating system found on Xiaomi’s products — is still based on Android 4.4 KitKat.

While the teaser is further proof that Yu’s upcoming smartphone will run CyanogenMod 12, which is based on Android 5.0 Lollipop, out of the box. The device itself is said to be a Qualcomm reference design with mid-range hardware that will be offered at an affordable price tag, as is the case with Yu Yureka, which is essentially a rebranded Coolpad F2 that offers a 720p display, Snapdragon 615 SoC, 2GB RAM, 16GB internal memory, 13MP camera, 5MP front camera and a 2,500mAh battery for the equivalent of $150.

Yu has been steadily gaining attraction since launching the Yureka in India late last year, accruing over 175,000 sales thus far. The handset is set to make the switch to Android 5.0 in the coming weeks, with the possibility of the update coinciding with the launch of the second Yu handset looking likely at this stage. It is clear that Yu is positioning itself as a direct competitor to Xiaomi, with both vendors offering a differentiated software experience along with stellar hardware at an affordable price.

Xiaomi is set to launch the Mi Pad and Redmi 2 later this month, and it is entirely within the realm of reason that Yu’s next handset will target Xiaomi’s upcoming handset.

The post Yu Starts Teasing Its Upcoming Smartphone By Mocking Xiaomi On Twitter appeared first on VR World.

After launching the Redmi 2 in Taiwan in February, Xiaomi is looking to bring the handset to India later this month, with March 12 cited as a possible launch date for the device in the country.

The Redmi 1S and Redmi Note got off to a great start in India, mainly due to their aggressive pricing and the stellar hardware on offer. Both devices were regularly sold out in under a minute during weekly flash sales, and formed the benchmark for affordable devices in the country. The hardware available with the Redmi Note in particular was far better than what was provided by other international vendors.

With Motorola launching an updated version of the Moto E in India on March 10, it makes sense for Xiaomi to do likewise since the Redmi 1S is now discontinued in the country. The Redmi 2 features better hardware from its predecessor in the form of a 4.7-inch 720p screen protected by Corning Gorilla Glass 2, 1GB RAM, quad-core Snapdragon 410 SoC, 8GB internal memory, microSD card slot, dual-SIM connectivity, 4G LTE, 8MP camera with BSI sensor, 2MP front shooter and a 2,200mAh battery.

In terms of software, the Redmi 2 features the latest iteration of MIUI, MIUI 6. There’s also a beefier version of the device that offers 2GB RAM and 16GB internal memory, but there is no word as yet if we’ll see that handset in India. Pricing of the device will be determined once it launches in the country, but it is believed to cost the same as the Redmi 1S, which retailed for $100. At that price, there won’t be a contender to the Redmi 2 that offers a similar set of features.

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Nvidia (NASDAQ:NVDA) is under fire for incorrectly listing the specs of the GTX 970, and while the manufacturer has announced that it will provide a way for users to return the card to those looking to do so, that does not seem to extend to a majority of Nvidia’s partners around the globe.

Major retailers such as Amazon and NewEgg are offering refunds to any user looking to return the GTX 970, but in countries like India, customers are left to fend for themselves as retailers are refusing to process returns.

The issue with the GTX 970 is that Nvidia implemented a new memory segmentation in the card, which meant that the 4GB available memory was sectioned into a 3.5GB segment and a 512MB segment. The memory controllers in the 3.5GB segment have direct access to the L2 cache, and deliver an advertised bandwidth of 196GB/s, but the last 512MB has to interface with another memory controller to access the cache, leading to a drastic reduction in bandwidth to 28GB/s.

The situation is more pronounced when a user has the two or more GTX 970 cards in SLI, with a noticeable decrease in framerates when gaming at higher resolutions. Indian hardware site HardwareBBQ posted a conversation between a user facing such issues with the GTX 970 in SLI, and his failed attempts to get a refund for the card. The conversation starts off with the user talking to an Nvidia engineer on the GeForce forums, after which he is redirected to talk to the card vendor directly to initiate the refund process (which in this case is Zotac India).

However, the e-mail communique results in the technical manager for Zotac India, Swarn Singh, refusing to provide a refund as the GTX 970 was delivered “as it is written on the box with all specification.” The user was redirected to contact Nvidia, with Singh stating that a refund would be entertained only if the card suffered from any warranty-related issues. A discussion with an Nvidia engineer based out of India by the name of Rajaram also fails to yield any results, with the engineer stating that it is not “possible to suffer lag (microstutters) when the FPS is high” on the GTX 970.

Zotac India’s stubbornness in acknowledging an issue exists with the GTX 970 is alarming, considering that the brand is one of several vendors processing returns on a global level. The situation is exacerbated when taken into account the fact that video cards often carry a markup of 30 to 35% in the country.

Furthermore, Nvidia claimed that it would assist users that were unable to claim a return for their GTX 970, but the conversations with retailers and discussions on message boards in India show that the chip manufacturer is not offering a solution to users who purchased the card in the country.

With card vendors like Zotac directing users back to Nvidia and the chip vendor not providing any recourse regarding the issue, Indian users are largely left in the cold when it comes to dealing with returns or refunds for the beleaguered GTX 970.

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India-based software and services giant Infosys (NYSE:INFY, BOM:500209) has announced the acquisition of enterprise automation startup Panaya, in a deal that values the US-based startup at $200 million. This investment is in line with the strategic thrusts of Infosys’ new CEO, Vishal Sikka, who aims to incorporate better use of automation and artificial intelligence in accomplishing repetitive tasks for client-based projects.

At its core, Panaya is a SaaS platform that enables enterprises to automate the testing process for managing their enterprise resources planning (ERP) software updates — Oracle EBS, SAP and SalesForce — particularly tracking potential pain points and coding issues, then making recommendations for fixes. However, the potential is greater. “The acquisition of Panaya is a key step in renewing and differentiating our service lines,” says Sikka in announcing the acquisition. “This will help amplify the potential of our people, freeing us from the drudgery of many repetitive tasks, so we may focus more on the important, strategic challenges faced by our clients.”

A $42.5 billion company, Infosys has been facing challenges in growing its business in the wake of Sikka’s ascent as CEO and managing director, after stepping down from his post as head of technology at German enterprise software giant SAP. The firm faces management churn and high attrition rates among its 160,000 staff globally, even as it is the second-largest IT outsourcer in India. The Panaya acquisition is thus more of an intellectual property acquisition than one of customer or data. By incorporating enterprise automation, Infosys can potentially improve the efficiency of its business services that range from banking, finance, manufacturing and other industries.

Prior to acquisition, Panaya has raised $59 million in at least six funding rounds, so far, with a $20 million Series E round announced in January 2015. For its part, Infosys has expressed interest in acquiring Europe-based technology firms to bolster its presence in the region, which is considered to be a difficult market for the Bangalore-based company, with high language and cultural barriers.

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Inventec Corp (TPE: 2356), a mobile device maker and the major supplier for China’s Xiaomi, said that it will begin mass production at a new factory in India during the second half of 2015 as part of its overseas expansion.

Huang Kuo-chun (黃國鈞), Inventec’s general manager, said that the company’s new plant is located in Chennai, a southern city of India. The plan has been approved by the company’s board of directors on Jan. 26. Initial production is expected to start in the late second quarter or early third quarter before entering mass production in the second half of the year, Huang said.

Huang said that the new plant in India, where is the world’s third-biggest smartphone market, will be used to assemble smartphones as well as other electronic devices, while components will be purchased from local Indian suppliers.

“In addition to China, India will mark our first step toward expanding capacity,” Huang said.

In the meantime, Huang also said that it remains unclear how much the Indian factory will account for Inventec’s total capacity in the next two years.

“Inventec’s major customers are ‘optimistic’ about its investment in the Indian plant but noted that there are still some challenges for the company to enter the Indian market, including the diverse Indian languages and cultural differences,” Huang said.

For now, he said, Inventec has a smartphone assembly factory in Nanjing, China, where monthly production capacity has increased from six million units last year to eight million units currently and is estimated to reach 10 million by the end of this year.

During a press conference last month, Inventec Chairman Richard Lee (李詩欽) said that the company’s shipments of mobile devices were estimated to increase from 30 million units in 2014 to 50 million in 2015, helped largely by the increasing orders from major customers like Xiaomi and growth in tablet computers.

Xiaomi, the leading Chinese smartphone maker, sold a total of 61.1 million smartphones in 2014, tripled from 18.7 million units in 2013. The “Chinese Apple” aimed to ship 100 million smartphones this year, of which Inventec is expected to receive 50% of the orders.

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Lenovo-owned (HKG:0992) Motorola announced that it sold more than 3 million devices in India since re-entering the country in February 2014. The manufacturer is looking to increase its presence in the country, and will be establishing experience stores in the country this year.

Motorola’s growth in India

The introduction of the first-gen Moto G – which was the first device to be exclusively offered online – changed the dynamic of the e-commerce industry in India and paved the way for brands like Xiaomi and others that sell their wares exclusively online. Before Motorola made its re-entry into the Indian market, brick-and-mortar stores contributed to a majority of sales, and they were seen as a necessary component in marketing a handset in the country. That has changed over the course of 2014, with the e-commerce industry playing a more significant part when it comes to smartphone sales in the country.

Motorola saw heavy demand for the Moto G, reaching 500,000 sales in the first three months of the device’s availability. The Moto E also witnessed a similar demand, with Motorola selling over 280,000 units of the Moto E and 180,000 units of the Moto G within 30 days of their launch. The first-day sales of the Moto E totaled 55,000 units. The Moto X – which was introduced at the mid-tier segment – also did tremendously well in the country.

The manufacturer – which became the fifth-largest smartphone vendor in the country by August – reached the 2.5 million mark by November, with the last 500,000 sales occurring in under a month. The introduction of the second-generation Moto G and the new Moto X – with the wood and leather back options – allowed Motorola to challenge the likes of Xiaomi, as well as more entrenched vendors like Samsung (KRX:005930).

Maintaining momentum in 2015

Amit Boni, head of India operations for Motorola, said that the manufacturer is looking to redouble its efforts in the country, “which is a very critical market for us.” While not giving any specifics away, Boni mentioned that Motorola may unveil handsets in India. The Moto Maker customization utility, through which users can select custom colors, accents and back options for the Moto X, is also slated to launch in India soon, although a timeframe was not mentioned.

To continue its momentum in the country, Motorola will be establishing experience centers in major metropolitan areas, starting with Bangalore. The first store will commence operations in March, with subsequent stores following suit at a later stage in the year. Five to ten stores are planned for the next six to nine months. The stores will double up as service centers, and will also allow interested customers to try out Motorola’s devices before purchasing them.

The sales model itself is not going to change for Motorola as it continues to partner with Flipkart in 2015, but by having an offline presence, the vendor is looking to increase its visibility and market to a wider audience.

Increased competition

While the first-gen Moto G set the benchmark for affordable devices, the budget segment in India has become increasingly competitive since. Xiaomi’s Redmi 1S, for instance, offers a similar set of hardware features as the second-generation Moto G at half the price. Then there are alternatives from other vendors, like Huawei’s Honor Holly, Asus’ (TPE:2357) Zenfone 5, Yu Yureka and more.

Motorola has better build quality and brand recognition going for it, but other vendors are not far off in terms of offering a similar experience. Xiaomi has managed to sell over a million devices in the country since making its debut last July, and is intent on maintaining growth. Another area manufacturers are targeting is the software-driven services. Xiaomi is working on launching a series of features tailored to Indian users, while Micromax is working with Cyanogen in building a digital platform for Indian users. Samsung is also looking to refocus its efforts in this segment with the Z1, which is the South Korean vendor’s first Tizen-based mobile device.

With more and more companies adopting an online-only approach, Motorola will find it harder to maintain its growth. It should be interesting to see what the vendor has in store for 2015.

The post Motorola Crosses 3 Million Sales In India, Redoubling Efforts In The Country appeared first on VR World.

After years of delays, Samsung (KRX:005935) unveiled its first handset running Tizen in India earlier this month. The phone signifies a new direction for Samsung in the ever competitive entry-level segment as the South Korean manufacturer sees to regain momentum. The pricing of the device at $90 (Rs. 5,700) is very aggressive, and is in line with what manufacturers like Xiaomi and Motorola are targeting.

The device

The Samsung Z1 looks like any other Samsung device in terms of external design. Plastic is used in abundance, and the menu, home and back button configuration is also present. The home button has been slightly altered and is more rounded. There’s also a metallic finish around the sides of the device. While the design is not drastically different, the Z1 retains the great build quality that is associated with all Samsung handsets. 

Also present is the removable back cover, which houses the dual SIM card slots. Coming to the hardware on offer, the Z1 has a 4-inch TFT display with a resolution of 800 x 480. Other budget handsets like Xiaomi’s Redmi 1S and Motorola’s Moto E offer a better screen — 720p and qHD — but for the amount that the Z1 costs, pixel density of 233 ppi is great. Contrast levels as well as viewing angles are decent, which is a good thing considering that the display is a TFT and not an IPS panel.

Internal hardware is in the form of a Spreadtrum SC7727S SoC, which features a dual-core Cortex A7 CPU and Mali 400 GPU. There’s 4GB internal memory, which can be extended by a further 64GB via the microSD card slot, 768MB RAM, 3.15 MP camera at the back along with a VGA front shooter and 1,500 mAh battery. In terms of connectivity, you get Wi-Fi 802.11 b/g/n, Bluetooth 4.1, A-GPS and microUSB 2.0. FM radio is also included.

The Z1 does not offer anything out of the ordinary in terms of hardware, but that isn’t what Samsung is aiming for. With the Z1, it is all about the software and Tizen.

Tizen is finally here

Tizen on the Z1 feels a lot like TouchWiz. It actually feels like what TouchWiz should have been to begin with, as there is barely any lag whatsoever when using the device on a day to day basis. The design itself is very similar to that of the newer iterations of TouchWiz, with the drop-down menu utilizing a bright green color hue. The menu has easy access settings for Wi-Fi, cellular data, sound, flashlight, Bluetooth and others, which is once again very similar to what is offered in Samsung’s Galaxy series of devices.

A noticeable change in Tizen is the lack of an app drawer, with all apps accessible with a swipe action. There is a dearth of content — as one would expect — in Tizen, but Samsung is looking to address the glaring omissions by launching custom versions of apps like WhatsApp. Users will also be able to install Android apps on Tizen by first installing OpenMobile’s Application Compatibility Layer from the Tizen store.

Samsung is incentivizing the purchase of the Z1 by offering a host of content for free to customers via Club Samsung. With the promotion, anyone buying the Z1 will be able to stream or download over 270,000 songs through Hungama, access over 80 live TV channels, watch several Bollywood movies on the go and more.

There are a few nice touches bit into Tizen that makes it all the more enticing for first-time buyers. When setting up a service like WhatsApp for the first time, the phone detects the confirmation text message and keys in the value without any user intervention.

Overall, the Z1 is astonishingly fluid for the hardware it features. Tizen was claimed by several leaks over the course of the last two years to be much more lightweight than the likes of Android, and that indeed is the case. There isn’t a noticeable lag when launching apps, and the user interface as a whole feels seamless, which is a drastic improvement

The device itself may not feature hardware to write home about, but it is the sheer amount of content Samsung is bundling with the Z1 that makes it worthy of consideration. Giving away a lot of premium content isn’t a new strategy for the South Korean manufacturer as seen with the Galaxy Gifts promotion for the high-end Galaxy Tab S, Galaxy S and the Galaxy Note series. But this time around, it is doing so with a device targeted at the entry-level segment. 

The market scenario

With the Z1, Samsung is going for the first-time buyers. While Tizen looks like it offers an interesting mix of features, the fact that it is in its nascent stages will deter several potential customers from buying the Z1. Also, vendors like Xiaomi, Motorola and others are offering much better hardware for the same price, and even if the Z1 is not as hardware-intensive as similarly priced Android devices, that mentality of comparing specs has become entrenched in the Indian market. Often, specs do not dictate how well a mobile performs, but with devices offering octa-core processors for as low as $140, consumers are increasingly judging the merits of a handset based on its spec sheet.

Samsung does have a loyal userbase in the country, but it remains to be seen whether the manufacturer will be able to claw its way back in this segment with the Z1. The device itself is not at fault, and is actually one of the better offerings from Samsung considering that even until a few years ago, we’ve had to contend with the likes of the Galaxy Star. Where Samsung will struggle with most when it comes to the Z1 is in marketing a device running a new OS that doesn’t feature anywhere nearly as good hardware as the Android mobiles it is going up against.

The post Hands-on With Samsung Z1: Tizen Makes Its Debut On Mobile appeared first on VR World.

China Steel Corp (TPE: 2002), the nation’s biggest steel supplier, said on Jan. 14 that better services to its clients in the South Asian region will be offered, now that the construction of its new plant in India was completed on Jan. 12.

China Steel Chairman Tsou Jo-chi (鄒若齊) said that the project of the new plant, including a new factory and sales office, in India has been a part of the company’s plan to extend its production and marketing network to South Asia and intensify its efforts to penetrate the market there. The construction of the cold-rolled steel mill in a Gujarrat Industrial Development Corporation Industrial Park in Dahej, located in western India, cost US$237 million.

The project, which was described as the first stage of China Steel’s investment in India, was launched in July 2012 and the construction began in August 2013. The new plant, featuring an annealing and coating line, launched commercial production on Jan. 12 and will roll out 200,000 tons a year of electrical steel, a type of cold-rolled steel. The new plant had been engaged in trial production since the end of September 2013.

Tsou said that electrical steel is used for the production of a wide range of products, such as electric motors and compressors.

“The new Indian plant is expected to shorten lead times and provide more timely service in the South Asian market, and I hoped it would allow China Steel to grow together with its customers,” Tsou said.

In the meantime, the chairman said that details of China Steel’s second stage investment project in India have yet to be finalized and the scale and timeframe of the investment will depend on market conditions.

In addition to the new production site in India, China Steel also owns production facilities in Vietnam and Malaysia and sales offices in Thailand and Singapore.

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In a field dominated by affordable handsets from the likes of Xiaomi, Motorola and others, Indian vendor Micromax is looking to offer something unique through its Yu sub-brand, which launched its first handset earlier this week, the Yureka.

From the outset, the Yureka is aimed at a younger audience, and as such will be available for sale exclusively online on Amazon India. Although seven out of ten mobiles in India are sold offline, the e-commerce segment is starting to challenge the established brick-and-mortar vendors, as evidenced by Xiaomi’s stellar online-only sales, which amounted to over 800,000 sales in under six months.

The start of something great

Micromax is looking to emulate a similar kind of success with the Yu series. Until now, the brand has failed to successfully distinguish itself in the Indian market, but with the exclusive partnership with Cyanogen, Micromax has the potential to offer not only affordable hardware, but also a strong suite of software-based services as well.

The deal with Cyanogen sees Micromax getting exclusive rights to CyanogenMod in India. The brand’s Yu series of handsets will run a custom version of Cyanogen’s ROM out of the box, and will receive updates directly from Cyanogen. The exclusivity agreement does not bode well for OnePlus, which recently made its debut in India. After launching the OnePlus One in India earlier this month, OnePlus was served with a court order issued on behalf of Micromax to curtail all sales of the device.

The issue at hand was the usage of Cyanogen’s branding and software, which as we mentioned earlier is exclusive to Micromax in India. Although OnePlus has a deal with Cyanogen to use its software in global markets, that agreement does not extend to India. While this may not be great news for OnePlus, it is looking to remedy the situation by launching its own ROM.

As for Micromax, the Indian vendor is looking to leverage the advantages offered by Cyanogen to build a digital ecosystem of content, which will be a first for any local vendor. With the Yu series, Micromax is looking to software as the main driver for revenue as the hardware itself does not look like it is being sold at a high margin.

The Yureka moment

The Yureka, for instance, comes with stellar hardware for its launch price of $145. Included is a 5.5-inch 720p display, 64-bit eight-core Qualcomm Snapdragon 615 SoC, 2 GB RAM, 16 GB internal memory, microSD card slot, 13 MP camera at the back with LED flash, 5 MP front shooter and 2,500 mAh battery. The hardware is in fact better than what Xiaomi is offering with the Redmi Note, and then there is the added advantage of CyanogenMod, which offers a host of extra features from stock Android.

The Yureka is the first offering in the Yu series, with Micromax stating that additional handsets will be launched early next year. The brand has also mentioned that it will be looking at the mid-tier, and even the high-end segments in the future, which should be interesting given that most of Micromax’s success has been in the entry-level segment thus far.

Considering the hardware on offer, it is easy to see how Micromax is not looking to make a significant amount of money through device sales. It is likely that the brand will follow Xiaomi’s model of selling devices at a low cost, and then making most of the profit through software services. During the announcement, Micromax co-founder Rahul Sharma announced that the vendor would be investing in building an ecosystem of content tailored for Indian users. In a country where customers are generally reticent when it comes to buying digital goods and services, it remains to be seen whether Micromax’s efforts bear fruit.

For now, however, the future looks bright for the Indian vendor. The latest sales numbers reveal that Micromax has managed to successfully erode Samsung’s market share in the country by a few percentage points in the last quarter, and with the launch of the Yu series, the brand finally has that differentiating factor it has been seeking for so long.

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Microsoft (NASDAQ: MSFT) is continuing its focus on the low-end segment in India with the launch of the Lumia 638, the brand’s first 4G-enabled handset in this segment. With 4G services set to take off in the country from early 2015, Microsoft is looking to build on its momentum in the country.

The Lumia 638 comes with a set of hardware features that should be familiar to Windows Phone users in this category. There’s a 4.5-inch screen with a resolution of 854 x 480, 1 GB RAM, 8 GB internal memory, microSD card slot and a 5 MP camera at the back sans flash and an 1,830 mAh battery. The device runs Windows Phone 8.1 out of the box, and comes in black and white color variants. Unlike the Lumia 535, which is a new device, the Lumia 638 that will launch in India is a variant of the device that was available in China, and as such will feature Nokia branding. 

While 4G connectivity is touted as the standout feature, the lack of a camera at the front is a letdown. The Lumia 638 offers great hardware for the price otherwise, but the lack of a front camera will be a dealbreaker for most users. Front cameras in entry-level Lumias have been hit and miss thus far. The Lumia 520 did not have one, but the recently launched Lumia 535 does feature a camera at the front. The Lumia 638 is also light in the sensors category, as the device does not feature proximity or light sensors

The handset will be available to the tune of $135, and will be sold exclusively via Amazon India, where Microsoft recently launched a dedicated device store. The storefront allows customers to buy from across categories, including Office, Windows and Xbox. Microsoft has also mentioned that it will be launching exclusive offers and discounts via its store on Amazon.

The vendor is keen on not straining its ties with offline retailers, and has mentioned that it will continue to offer devices offline as well.

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The OnePlus One made its debut in the Indian sub-continent earlier this month, with the country set to be the first territory outside of China where OnePlus has an offline presence. However, the launch of the device was marred by uncertainty regarding the status of continued updates from Cyanogen, who handles the software side of things.

Cyanogen’s deal with Micromax

In November, Cyanogen announced that it has entered into a partnership with Indian handset manufacturer Micromax in launching a series of devices that run CyanogenMod out of the box. These devices will be available later this year under the Yu branding as Micromax looks to differentiate itself from other Indian vendors. At the time, we speculated as to how the imminent arrival of the OnePlus One would have detrimental consequences to Micromax’s collaboration with Cyanogen, as OnePlus’ device already comes with a customized version of CyanogenMod out of the box.

It is this factor that has caused much consternation between Cyanogen and OnePlus, as it was later revealed that Cyanogen has entered into an exclusive deal with Micromax in India, making the Indian vendor the only manufacturer that could sell devices running Cyanogen’s custom ROM. Cyanogen’s deal meant that while the OnePlus One would still feature CyanogenMod 11S, Indian users would no longer receive future software updates. OnePlus took to its blog late last month to call out Cyanogen, and to reaffirm Indian users that it would continue to provide software updates via a custom-built ROM of its own.

Cyanogen later mentioned that it would continue to provide updates to all global OnePlus One users. At the time, the statement was met with joy as OnePlus announced during the launch that it would be bringing the global version of the device to India. Many took Cyanogen’s statement to mean that the custom ROM vendor would continue to push out software updates to Indian users after all.

That turned out to not be quite true, as Cyanogen took to its blog over the weekend to clarify that it would not be rolling out updates in the future to Indian users. All OnePlus One users from outside of India will continue to get updates, and those users who bought the global version from outside India and are using the device in India will also receive the updates, but customers who purchase the handset in India will be left out.

Where this leaves OnePlus One users in India

For customers in India, the only alternative then is to wait for OnePlus’ custom ROM, which is based on Android 5.0, and see if that is similar in functionally to what Cyanogen currently offers. OnePlus is claiming as much, but it is still unclear as to how users would be able to make the switch to OnePlus’ ROM. Usually, installing a new ROM clears all data from a device, which is something many users would be unwilling to do.

During the launch of the OnePlus One in the country, the vendor’s CEO stated that customers would be able to walk into OnePlus service centers, which will be accessible to users across the nation, and get the vendor’s custom ROM flashed. No word on how this feature will be made available to users who are not willing to or do not have easy access to a service center.

Whatever the case may be, it looks like OnePlus is making the most of a bad situation. The vendor is setting ambitious goals for itself in India, and is looking to establish a base of operations along with a robust after-sales network in the country. While OnePlus was content with not offering a series of service centers in any of its launch countries, the situation when it comes to the Indian market is different. Strong after-sales service is a make-or-break deal for most potential customers, which goes to show why brands like BlackBerry still manage to do well in the country. Handset manufacturers that have recently entered the market have realized this, and are looking to establish or collaborate with the existing service center infrastructure. Vendors like Xiaomi, Gionee and Lenovo all boast a strong service network that extends to not only the major cities, but also to remote locations in the country.

As for the device itself, the OnePlus One is turning out to be one of the best bargains of the year, which is saying something as the Indian audience have witnessed the launch of devices like the Mi 3 earlier this year. With a 5.5-inch full-HD screen, quad-core Snapdragon 801 SoC, 3 GB RAM, 64 GB internal memory, 13 MP camera, 5 MP front camera and Wi-Fi ac connectivity, the OnePlus One is the best device in the sub $400 (Rs. 24,000) segment by a long margin. Although OnePlus is collaborating with Amazon India, the vendor has mentioned that it will stick with the invite system for the time being, stating that users in the country will have easier access to invites. The only issue that remains to be fixed is that of software, and how soon OnePlus can figure out how to fix it.

The post Cyanogen Does Not Know What To Do With OnePlus One Users In India appeared first on VR World.

Samsung (KRX:005935) may be finally close to launching a handset running Tizen, dubbed the Z1, in India on December 10. The device is set to target Google’s Android One initiative and boost Samsung’s offerings in the entry-level segment, a market where the manufacturer is struggling of late.

Earlier this year, the South Korean firm announced that it would be launching two Tizen-based handsets, one targeting the low-end market and the other the high-end segment. An official launch was scheduled in Russia in the month of October, but Samsung canceled the plans at the last minute. Rumors of a Tizen-based device started soon after the launch of the Galaxy S4 last year as it was revealed that Samsung was working on offering a device with similar hardware as the S4 but running Tizen.

As for the hardware the Z1 would feature, latest leaks suggest a 4-inch screen with a resolution of 800 x 480, 1.2 GHz dual-core SoC manufactured by Spreadtrum, a company backed by Intel (NASDAQ:INTC), who is also a member of the Tizen Foundation. The details include a 512 MB RAM, 4 GB internal memory, 3.2 MP camera along with dual-SIM and 3G connectivity.

Samsung was said to be considering Tizen as an alternative as the vendor looked to reduce its reliance on Android and Google. However, it looks like those plans were canceled earlier this year as the vendor started losing traction in the smartphone segment. One of the main drawbacks that the manufacturer faces is in terms of a content ecosystem. While Tizen in itself may offer features similar to that of Amazon, it would be difficult to get potential customers interested if there are not many third party apps available.

While the manufacturer launched several wearable devices like the Gear S that run Tizen, this will be the first time we’ll see a handset running the operating system. With the rumored launch a week away, it should be interesting to see the direction Samsung takes with its Tizen-based handset.

The post Samsung May Finally Launch Its Tizen-based Handset Next Week appeared first on VR World.

After a continued tussle with Indian authorities over lack of two-factor authentication support for its payments, Uber has announced that all future payments will be carried out exclusively through a digital wallet powered by Paytm. Customers interested in riding with Uber have to set up their debit cards on Paytm and add money to their digital wallets.

To incentivize the move to Paytm’s service, Uber has been offering five free rides last week to all users who have linked their cards to Paytm’s digital wallet. Uber has been vocal with regards to the Reserve Bank Of India’s mandate that requires all businesses to provide two-factor authentication for all transactions online, calling the move “a major challenge for businesses trying to offer Indian consumers a better purchasing experience.”

Two-factor authentication woes

Back when Uber launched in the country earlier this year, it allowed customers to pay using a credit card without two-factor authentication, which drew the ire of the RBI. Uber was able to circumnavigate Indian business rules by processing transactions through its Netherlands subsidiary, leading to a formal inquiry by the RBI to curtail such measures. The Indian regulator dictated that any service operating out of India has to offer payment services within the country.

Uber was given until Nov. 30 to comply with RBI’s regulations, which led to the service collaborating with Paytm. Uber’s reticence to do so was evident in a blog post on its official blog, which labels the mandatory two-factor authentication as “an antiquated solution that is cumbersome for consumers and stifling for businesses.”

“India’s current regulations require every transaction made with an Indian credit card, no matter how small the amount, to include two-factor authentication (2FA). As you are aware, we recently expanded the available payment options on Uber to include a Paytm Wallet, which allows you to pay for your rides through Debit Card, Credit Card and Net Banking. Paytm is the leading e-wallet provider in India, and this solution is 100% compliant with all applicable regulations including 2FA.“ 

With the new system in place, customers will be able to add money to their wallets using a debit card using the Verified by Visa or MasterCard Securecode two-factor authentication systems. The points Uber mentions in its blog post are all valid. While the two-factor authentication is a vital security measure, the RBI should be willing to allow certain service providers to make it convenient for users to pay without having to undergo an additional step.

Tough for the customer

As a long-time Uber customer in India, I can say that the two-factor authentication is more cumbersome to use in this particular instance. Adding money to a digital wallet before availing the service is often frustrating, and the redirection to Visa or Mastercard’s authorization services is not always seamless.

Furthermore, while the collaboration with Uber may seem like a profitable move for India’s Paytm, the service’s CEO revealed that it is not as lucrative as it seems:

Our RBI licence doesn’t allow any interest earning or other use of this money in ur wallet. Kept in a nationalised bank escrow on ur behalf.

— Vijay Shekhar (@vijayshekhar) December 1, 2014

Uber is now asking the RBI for a 45-day extension to allow existing customers to move to the digital wallet service. As for new user acquisition, Uber is set to challenge the autorickshaw industry with its latest pricing tier, UberGo. The low price tier, which is now being rolled out in ten cities across India, allows customers to ride in a taxicab for far less than what it costs in an auto. Uber even made a chart to highlight the price difference:

With several pricing tiers and affordable pricing across categories, it is clear that Uber is targeting growth in the country in lieu of profits. UberBlack, for instance, is priced at an aggressive Rs. 18 ($0.3) per kilometer. As to whether any of this succeeds in getting the service a considerable amount of traction remains to be seen.

The post Uber Switches Stance In India To Target Growth appeared first on VR World.

India’s largest handset manufacturer Micromax has announced a new series of devices under the Yu moniker that will run CyanogenMod out of the box. With the competition in the hardware segment getting fiercer, Micromax is hoping to set itself apart with unique services.

Targeting a younger audience

After establishing a firm foothold in the Indian market, Micromax sought to differentiate itself from other local vendors like Karbonn and Xolo. The brand was said to be in talks with Microsoft over the manufacture of a Windows Phone device, but that did not materialize. Karbonn and Xolo have since beaten Micromax in launching Windows Phone handsets. The vendor then started focusing on distinguishing itself from the smorgasbord of mid-tier devices by offering an aluminium design and high battery life, as seen in the Canvas Turbo and Canvas Knight.  Both devices, however, failed to attract a lot of attention, even after aggressive marketing:

Micromax is now looking to emulate Xiaomi with its Yu series of handsets. Targeted at a younger audience, Micromax’s Yu handsets will run CyanogenMod out of the box. Like Xiaomi, the devices will be sold exclusively online, and there are plans of selling the handsets outside of India as well. “This will be a game changer not just in India but globally too. Yu has been envisioned for building an ecosystem of connected devices and offer customized experience to users.”

Micromax founder Rahul Sharma says that the devices will be targeting “tech enthusiasts who will be able to bootstrap the device and play with it.” Details of the hardware the initial batch of handsets would run were not provided, but considering the affordability that Micromax is targeting, it is unlikely they will offer anything extraordinary when it comes to hardware. With Yu, Micromax is going instead for software and services, where the brand sees a lot of potential. The similarities with Xiaomi do not end at online-only sales, as Micromax will also be looking to pay close attention to user feedback via forums, and will incorporated suggestions into software builds every fortnight.

Sharma also said that Yu Televentures, which will operate as a wholly owned subsidiary of Micromax, will also be heading into the wearable market, with smart bands and “smart shirts” set to launch within a year.

Mi, Myself and Yu

At this stage, it seems unlikely that Micromax will be able to successfully challenge Xiaomi with its Yu handsets. Although the CyanogenMod angle will get users interested, lack of powerful hardware would just as easily deter potential customers. And Micromax cannot iterate like Xiaomi does when it comes to hardware manufacturing, which means that it cannot match the Chinese vendor when it comes to value for money.

And while Sharma has stated that the brand will “engage directly with customers,” it will not be at the same level as what Xiaomi does with its user forums. The Mi India community is hard at work localizing Xiaomi’s MIUI for Indian customers, and has already started offering translated builds of the UI in several Indian languages. If that weren’t enough, Xiaomi is also establishing an office in India that is tasked with building an Internet platform centered around services that Indian users can leverage.

The question remains as to where Micromax’s Yu devices will slot in. At the entry-level segment, Google – in collaboration with Micromax, Spice and Karbonn – is offering the Android One handsets. The first generation devices all feature the same hardware, but the second-generation is said to bring more variety. The mid-tier segment seems like the ideal bet, but enthusiast users looking to get CyanogenMod on their devices would be looking to international vendors like OnePlus, which will be making its debut in India next month. If Micromax can match OnePlus’ quality and offer a device with similar specs at the $350 mark, it stands to carve out a niche for itself in the Indian market. But from what we’ve seen of the vendor thus far, that seems unlikely.

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On November 1, Nokia’s Chennai manufacturing facility, was finally shut down following the termination of the mobile purchasing agreement from Microsoft (NASDAQ: MSFT) . With no vendor to cater to and the Indian government freezing Nokia’s assets following legal issues, Nokia decided to shutdown the plant and lay off the 8,000 full-time staff at the facility.

In its heyday, the plant accounted for over 60% of Nokia’s global handset production, with the vendor exporting devices produced at the location to Middle East and Africa, Asia, Australia and New Zealand. While the facility itself was originally meant to be included in the $7.2 billion sale to Microsoft, the legal issues from the Indian government prevented the transfer of the plant once the deal was finalized earlier this year. Nokia then entered into an agreement to manufacture phones for Microsoft from the facility, but that agreement come to an end on October 31 and was not renewed.

Legal issues

The setbacks began when the Indian government discovered that Nokia was selling handsets produced at the Chennai facility in the domestic market. The factory was categorized solely for exports, which entitled a host of benefits from the state government including a free 99-year lease, power, tax, and electricity cost reimbursements as well as other write-offs. The Tamil Nadu government facilitated these measures to grow local manufacturing and drive jobs in this segment, and it succeeded as the facility at full output had a workforce of 12,000 full-time workers and 25,000 contractors.

Handsets that were being exported to other countries were exempt from Indian tax laws, but if a device were to go on sale in India, it would incur additional taxes in line with the local tax rules. It was found that Nokia’s Indian subsidiary was not conforming to the local tax laws when selling handsets in the country, which led to a fine of $352 million from the Delhi High Court for the six-year period from 2006 to 2013. An asset freeze followed, but was soon revoked to allow the sale of the facility to Microsoft. That fell through as it meant that Microsoft had to pay the government Nokia’s back taxes. The tax issue is still being debated by Nokia, which claims that it is far lesser than $350 million. Over-complicated tax laws are said to be another factor in deciding the actual amount that is owed by the Finnish giant.

Nokia is looking to renew its factory license so that it can sell the 200-acre facility as a fully functional electronics factory to future buyers. The manufacturer has until the end of the month to renew its license, and failing to do so would reduce the facility to nothing more than a warehouse.

A setback for India

Whatever the verdict comes out to, it is clear that the closure of the Chennai plant is a major setback to the manufacturing segment in India. Prime Minister Narendra Modi is actively promoting a “Made in India” campaign to bring hardware manufacturing to the country, but primitive custom laws and lack of skilled workers are major hurdles for prospective vendors looking to set up shop here.

IBM (NYSE: IBM) was in discussions with the Indian government to set up a fab in India, but the move fell through. The Indian government is keen on foreign investments and is ready to provide lucrative deals, but the lack of infrastructure seems to be the biggest drawback. Local manufacturers like Micromax and Karbonn are beginning to understand the value of local manufacturing, but Xiaomi looks likely to create a facility in the country before the local vendors. According to a statement from last month, Xiaomi is currently estimating the viability of a manufacturing facility in India.

It may be a while before we see any real progress in this segment, but the longer-time prospects do seem encouraging considering the rising labor costs in China. With manufacturers like Foxconn (TPE:2354) now looking to countries like Indonesia and beyond for production, India is a likely candidate. The country has manual labor in abundance, and the government is keen on offering lucrative deals for foreign entities. However, to avoid setbacks like the one brought about by Nokia, the government needs to be clear in establishing clear-cut laws and communicating these laws to vendors setting up a base here.

The post Nokia’s Chennai Plant Closure Is A Setback For Manufacturing In India appeared first on VR World.

Samsung (KRX:005935) officially launched the Gear S smartwatch in India yesterday, with the device available exclusively on Amazon India. The arrival of the SIM-enabled smartwatch highlights the growing interest in the segment in the country, which is starting to gain traction.

Samsung’s Gear S is the first smartwatch to offer a built-in SIM-card, which would allow users to make calls and receive texts and messages without the need to connect to a device. This standalone connectivity is great considering the fact that most buyers in India are now starting to buy their first smartphones, although the device’s cost of $450 is prohibited. A similar smartwatch with a lower barrier of entry will have far greater potential.

Although the wearable segment is still in its nascent stages, it is encouraging to see the number of products that are available for purchase in India. The Moto 360 is already available for $300 on Flipkart, and the website scored an exclusive deal with Martian in launching the Martian Notifier series of watches. Garmin’s Vivofit smartband is also available (again exclusively) on the site, and Samsung’s entire range of Galaxy Gear devices can be bought from offline and online stores.

LG(KRX:066570) also has its G Watch for sale in the country, with the device already seeing a massive discount following the launch of the Moto 360. The G Watch is now available to the equivalent of $100.

There are still notable names missing from the list; Asus (TPE:2357) is yet to announce the Zenwatch for the country, and LG has similarly not shared availability details of the circular G Watch R. Meanwhile, Xiaomi is set to launch the Mi Band in the country for just $12, which could turn out to be the catalyst for the segment. Ever since its debut in India, Xiaomi has managed to carve out a niche for itself by selling handsets that offer great value for money. A fitness band like the Mi Band could be the product that drives mainstream interest for wearable in the country.

The post The Wearable Segment Is Starting To Take Off In India appeared first on VR World.

The Indian e-commerce industry is booming thanks to lucrative discounts and exclusive partnerships secured by various retailers. However, the biggest obstacle to the continued success of the segment in India may come from within as several brick and mortar retailers have formed a coalition that aims to curtail the benefits offered by e-tailers.

Retailers take the fight to e-tailers

The issue began earlier this year, when retailers began questioning the heavy discounts offered by e-commerce stores, which in turn was cannibalizing sales from offline channels. The retailers took up the matter with the hardware vendors directly and were able to convince brands like Lenovo against selling their wares online. Lenovo (HKG:0992) even had a notice on its website stating that its products were to be purchased only from its official site or from its offline distributors. The brand’s managing director for India, Amar Babu, said that the goal was to establish price normalcy. “We are trying to weed out unhygienic practices to create a healthy environment between online and offline markets,” he is quoted as saying.

Even Samsung (KRX:005935) was said to be swayed, and is rumored to be considering going offline in the country. While there hasn’t been any official confirmation from the South Korean vendor yet, going offline may offer a solution to declining sales. Sony (NYSE:SNE) is also joining the fray and is advising users to buy from its own authorized stores. LG (KRX:066570), meanwhile issued a statement announcing that it has the right to withhold warranties for products purchased from online stores other than its official website in the country. Canon (TYO:7751) has taken a different route, and is said to be considering offering a unique set of products for online sales.

As for retailers, a new body called the All India Mobile Retailers’ Association, which claims to represent over 10,000 brick and mortar retailers, has been created to look into the pricing practices carried out by online vendors.

E-commerce stores go exclusive

The main issue with online stores is that the stores themselves have no control of the pricing. Stores like Amazon and Flipkart follow a marketplace model, which means that the third party sellers effectively have full control over how much price they can set on a product.

The result is that when it comes to mobiles – the biggest selling category in e-commerce in India – stores offer discounts up to Rs. 3,000 ($50) from what is available offline, not including the freebies that come bundled with purchases. The sellers that were selling the wares procured the goods at a wholesale price, which is noticeably lesser than what the consumer pays for a device. This is how they were able to mark down the price of a handset and still gain a profit. The offline stores were not able to follow suit due to the overhead costs from stocking a device in a brick-and-mortar store.

While offline retailers have sought to get products removed from e-commerce stores, sites like Flipkart (BOM:514215) and Amazon (NASDAQ: AMZN) have formed collaborations of their own. Flipkart in particular was able to secure exclusive partnerships with Motorola and Xiaomi, which saw the site become the only authorized location to get products from either vendor in the country. Amazon has not been as successful, although it did manage to get exclusive rights to the Xbox One in India. Along with exclusive deals, the sites regularly run deals and offers, although a recent deal by Flipkart resulted in further tension between offline and online vendors.

Big Billion Day

While the idea behind Flipkart’s Big Billion Day sale held on October 6 was admirable, the execution was far from it. For one day only, the site offered heavy discounts on over 10,000 products across all categories, and ran hourly deals that saw prices of products slashed by as much as 80%. However, the site failed to load for most of the day, and products were sold out in under five seconds of going on sale. That’s not to say the retailer did not do a lot of business. Flipkart claimed that it sold goods worth over $100 million in just 10 hours.

The sales figure is the only good thing to come out of what is being termed a debacle, as both consumers and vendors have lodged complaints against Flipkart for the sale. Consumers mentioned that the site was misleading in the offers it quoted, while hardware vendors said that they did not authorize the heavy discounts that were posted during the sale. Sony’s Indian sales head Sunil Nayyar was particularly vehement about the practice, stating that, “the online sale war of Monday (Big Billion Day) was really disappointing and alarming. This is not the way we have agreed to do business as partners. We have decided to handle online discounts now with an iron hand and will ensure Sony is not involved again and there is a fair play for all channels.”

A complaint has been filed earlier this week with the Competition Commission of India to further investigate the issue, and to look into the discounts that were offered by all e-commerce sites during the festive season, which ran the length of October.

At the end of the day, it is clear that the disagreement comes with the disparity in pricing. Offline retailers want to be able to maintain their markups, and since they’re in the majority for now, they have enough clout to influence the decisions of the manufacturers. It is frustrating to see vendors fighting over discounts and seeking measures to curtail such practices, which in fact benefit consumers. One of the reasons for the massive growth of the e-commerce segment was the discounted prices from offline channels, and although it looks like retailers will be successful in cutting down on what they call “unsustainable pricing”, it is not hard to see that it is they who will lose out in the end and more and more consumers start buying online.

The post The Brewing E-tailer-Retailer War in India appeared first on VR World.

The Indian e-commerce industry is set to witness a dramatic change in the way it functions as offline retailers seek to curtail the “unsustainable pricing” practices that are being followed by sellers online. The move to limit heavy discounts and delist products from online stores is a direct result of complaints levied by retailers to hardware manufacturers.

According to offline retailers, who contribute to a bulk of sales in the country, there is no check on the prices being set by e-commerce stores as they follow a marketplace model, which gives full control as far as prices are concerned to the third-part sellers listing products on the sites. The manufacturers have thus far sided with the retailers in the battle, with several vendors like Sony (NYSE:SNE), Lenovo (HKG:0992) and LG (KRX:066570) advising users to only buy products through their official websites in the country.

Amazon India and Flipkart, the leading e-commerce website in the country, have come under a lot of criticism and are set to face scrutiny by the Competition Commission of India, a government body that investigates malpractice.

To read the full story, head to VR World, Bright Side of News* Asia-Pacific sister site.

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