A sales assistant checks Samsung Electronics' Galaxy S5 smartphones at a shop in Seoul
IN PHOTO: A sales assistant checks Samsung Electronics' Galaxy S5 smartphones at a shop in Seoul July 29, 2014. South Korea's Samsung Electronics Co Ltd on Thursday reported a 24.6 percent fall in second-quarter operating profit, in line with guidance, due to disappointing returns from its smartphone business. Picture taken July 29, 2014. REUTERS/Kim Hong-Ji REUTERS/Kim Hong-Ji

Google's operating system, Android KitKat and the Android One Initiative, signify yet another bad news for Korean Electronics Giant, Samsung. Emerging markets like India and the Philippines, which are both very populated countries, are switching from feature phones to smartphones. People find it exciting to get the upgrades at cheaper costs.

Although, Google's latest upgrade with its Android Kitkat 4.4 does not impress anybody with more innovative designs and state of the art feature changes, it is certainly able to reach its main goal of being available for all kinds of smartphones, be it high-end or low-end. Google's intention is to make the operating system a little bit smaller so that it can be used on more devices. This certainly narrows the wide gap between high spectrum and low spectrum phones.

Lower end devices typically use only 512mb of memory so that they can keep their device affordable according to the Economic Times. But this makes the smartphones react slower than expected. However, Google has made Kitkat a more practical operating system, which can run efficiently with just 340 mb of memory. This is an incremental improvement for users in terms of speed and efficiency. With the help of Kitkat, people can now purchase low-cost smartphones but get the high-end experience. Users in India, are particularly ecstatic about this development.

Moving forward, this poses a grave threat to Samsung. Xiaomi, translated as "little rice" in English, has already penetrated and beaten them in China with $100 smartphone offerings according to TIME. The danger becomes more imminent with the availability of Kitkat and Android One. The Android One aims to provide design references to smartphone makers who will price their phones at $100. Currently, brand names such as Karbonn, Spice and Micromax are hitting the stores and continuing to loom over the Korean titan, Samsung.