Key Points:
- Billionaire Mukesh Ambani is planning of introducing a $54 smart phone
- He is said to be in talks with the government about giving the assembling to the domestic companies.
- Chinese brands will be in danger if the smart phone is a success.
- “Jio has an opportunity to target more than half billion Indians who don’t own a smartphone and trigger a blue ocean market opportunity,” – NEIL SHAH Research Director at Counterpoint Research.
India’s most valuable company is in talks with domestic assemblers to make an edition of its Jio phone that would run on Google’s Android and cost about 4,000 rupees ($54). Reliance Industries Ltd. has asked local providers to ramp up manufacturing capacity in India so they can make as many as 200 million smartphones over the next two years.
If the smart phone is successful, it will be a threat to companies like Xiaomi Corp. and others and will also boost the country’s technology ambitions. It is said that the reasonably priced phones will be marketed with low-cost wireless plans from Reliance Jio, the parent company’s carrier.
To boost the local assemblers like Dixon Technologies India, Lava International and Karbonn Mobiles, the Billionaire is also allying himself with the Indian government’s plans to build more at-home manufacturing.
“Jio has an opportunity to target more than half billion Indians who don’t own a smartphone and trigger a blue ocean market opportunity,”
“With Reliance expected to work with Indian vendors, Chinese brands will lose out on a potential opportunity and market share.”
“If they’re successful in getting even 10% of this base to upgrade, Jio can become one of the leading smartphone brands of 2021.”
Neil Shah, Research Director at Counterpoint Research said.
Reliance is currently the only Indian company that has a lot of running in the technological aspect. Starting from the Free Internet Service that led to audience consuming Jio more than any other network to the possibly cheapest Smart phone that is in talks, Mukesh Ambani’s Jio will dominate the market within no time.
