One of the announcements at Google I/O 2014 was the Android One initiative, which aims to allow Google's mobile OS to reach its "next five billion" users. Google's Sundar Pichai, which heads Android and Google spoke of the importance of offering "high-quality, low-cost" smartphones for emerging markets.
With Android One, Google will work with closely with manufacturers to produce affordable, yet high end smartphones with features meant to suit particular regions. For example Sundar spoke of the importance of features like FM radio, Dual SIM connectivity and SD storage in his native country, India.
The devices would run the stock version of Android, and get automatic updates directly from Google. Interestingly, Google did leave the door open for extra apps to be added to the stock experiences, but said that any extra apps would have to be "locally relevant".
Partners like Micromax, Karbonn and Spice will team up with Google for the Android One initiative and Micromax even had a device on display at Google I/O with a decent 4.5 inch screen which will be priced at around $100.
source - Google
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