China-based handset vendors are unlikely to launch Android One smartphones as the price/performance ratio of Android One models is inferior to some of low-priced Android-based smartphones rolled out by China's handset vendors, according to industry sources.

Google will cooperate with India-based handset vendors Micromax, Karbonn and Spice to launch sub-US$100 Android One phones to enable more feature phone users to switch to smartphones, while regaining the dominance over the development of the mobile platform.

Spice led the rival vendors to become the first vendor to launch the Android One phone with the release of its Dream UNO Mi-498, which comes with a 4.5-inch display, MediaTek 1.3GHz quad-core CPU, 5-megapixel real-facing camera, 1GB RAM and 4GB ROM, priced at INR7,000 (US$115) unlocked.

Judging from the Dream UNO Mi-498, the price/performance of the Android One model is lower than expected and its retail price is higher than US$100, the sources indicated.

With its hardware specifications, the Dream UNO Mi-498 is hard to compete effectively against entry-level models launched by China-based vendors outside the India market, the sources commented.

In China, consumers are now able to buy a smartphone equipped with a 5-inch display, a 13-megapixel camera and a MediaTek 8-core CPU for US$100, the sources noted.

Furthermore, since China-based handset vendors have been using reference designs offered by MediaTek or Qualcomm (QRD) utilizing hybrid Android OS systems and local mobile service applications, the chance is low for China's handset vendors to roll out Android One phones, commented the sources.