19 Comments

Summary:

INQ, a budget handset maker, is planning to launch a series of Android phones starting late in 2010. It’s also embracing touch technologies. New handsets will help the company go up-market and compete in the emerging market of smartphones for mass market buyers.

Frank Meehan speaking at Mobilize 09Frank Meehan, chief executive officer of London-based social handset maker INQ Mobile, said at our Mobilize 09 conference last fall that his company would adopt Android as its main platform. Yesterday, Meehan told GigaOM that it will launch the first of its phones based on Google’s OS, a multitouch device, sometime in the fourth quarter.

“We are going all-Android and touch,” said Meehan. The shift will be yet another blow to Qualcomm’s BREW OS, the underpinning of current INQ devices. But INQ, which was spun out of 3 of the UK after it launched a Skype phone that used its 3G network, will continue to focus on developing devices that revolve around popular, fast-growing Internet applications. And the connections of Chinese billionaire Li Ka-Shing, the sole backer of INQ, will continue to help the company gain traction in China.

INQ in recent months launched a socially aware, Facebook- and Twitter-friendly QWERTY phone, the INQ Chat 3G, of which Meehan told us it’s sold more than 1.5 million units. He expects a big sales spurt soon as his phone company’s handsets are made available in new markets. INQ’s big markets currently include UK, Italy and India.

The Pivot

The shift to Android and touch devices is part of bigger pivot being made by the company. While Meehan declined to give any details, INQ clearly sees a bigger opportunity in selling pricier devices, two in particular.

The first is in retail. While INQ started out making handsets that were “budget” and carried low margins, it spent lavishly to build its brand, which is actually more premium than the products it offered. But in order to get traction in the retail channel, it needs to keep its salespeople happy. Low-end margins bring marginal commissions, which in turn offer little incentive to your salespeople to push your phones. From that perspective, it makes sense for INQ to pursue a different strategy.

Secondly, the world of mobile phones is in a massive flux. Thanks to the introduction of Apple’s iPhone and Google’s Android, the whole mobile industry has been up-ended — and some of the traditional handset makers such as Sony Ericsson and Nokia have been having a tough time. Instead of traditional feature phones, the market is likely to move towards the smartphone form factor. Which offers a golden opportunity for new entrants to establish a presence.

HTC, for example, is going after the high end of the Android smartphone market. INQ is focus on the market segment just below HTC, in the process taking on Sony Ericsson, LG and Samsung. Does it sound crazy? I don’t think so. INQ has an important thing in common with Apple and Google (via HTC): It’s a software company that does hardware – — specifically hardware that revolves around web services.

Related content from GigaOM Pro:

The App Developer’s Guide to Choosing a Mobile Platform

By Om Malik

You're subscribed! If you like, you can update your settings

  1. [...] INQ has unveiled more details about its Android plans, saying to GigaOM that its first phone to run Google’s OS will be available sometime in the fourth quarter of the [...]

    Share
  2. Watching INQ operate in India, first piggybacking off Aircel, whose users are more curious about INQ than anything else, and then going with a campaign targeting the fashion conscious lot,
    considering that their phones are more budget conscious than the competition, a big win in India, it’s great to see how they are opening the mobile web wider and wider for general consumption, unlike the iPhone focus.

    Google still doesn’t understand social networking!

    Share
  3. [...] INQ has unveiled more details about its upcoming Android handset. This Android-powered handset will be released sometime in the fourth quarter of the year. The INQ Android handset will feature a multitouch display screen. Unfortunately, there is no further info about the specification of this handset. It seems that INQ wants to go after Samsung and Sony Ericsson with its Android phones. Stay tuned for more updates. [GigaOm] [...]

    Share
  4. [...] INQ has unveiled more details about its upcoming Android handset. This Android-powered handset will be released sometime in the fourth quarter of the year. The INQ Android handset will feature a multitouch display screen. Unfortunately, there is no further info about the specification of this handset. It seems that INQ wants to go after Samsung and Sony Ericsson with its Android phones. Stay tuned for more updates. [GigaOm] [...]

    Share
  5. [...] INQ has unveiled more details about its upcoming Android handset. that Android-powered handset will be released sometime in the fourth quarter of the year. The INQ Android handset will feature a multitouch display screen. Unfortunately, there is no further info about the specification of that handset. It seems that INQ wants to go after Samsung and Sony Ericsson with its Android phones. Stay tuned for more updates. [GigaOm] [...]

    Share
  6. [...] poco INQ desveló más detalles sobre sus planes Android, en donde le dice a GigaOM que su primer teléfono inteligente en ejecutar el sistema operativo de Google estará disponible [...]

    Share
  7. [...] Om Malik points out, INQ shares something in common with Apple and Google in that they are software companies that do [...]

    Share
  8. What I find most curious about this story is that INQ is releasing social network centric handsets. Microsoft also has done the same with the Kin. I am wondering if this is a trend that we will be seeing through calendar 2010 and 2011?

    These types of phone are obviously appealing to a young crowd (teens and early 20′s). Perhaps another reason why price point is set lower.

    Share
  9. [...] INQ has unveiled more details about its upcoming Android handset. This Android-powered handset will be released sometime in the fourth quarter of the year. The INQ Android handset will feature a multitouch display screen. Unfortunately, there is no further info about the specification of this handset. It seems that INQ wants to go after Samsung and Sony Ericsson with its Android phones. Stay tuned for more updates. [GigaOm] [...]

    Share

Comments have been disabled for this post