Reliance Jio Launch New Smartphone For Indian Market
To reduce the reliance on Chinese mobile companies in the Indian telecom market, Mukesh Ambani,Chairman,Reliance Industries Ltd.Is planning to take over the telecom market by launching smartphones at a low price of Rs 4,000 crore. Reliance Jio aims to produce more than 100 million cheap smartphones that work on the Android platform.
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Reliance’s plan could hit companies like Chinese company Xiaomi Corp hard. Along with Reliance, Airtel is also partnering with domestic mobile companies to launch smartphones.Reliance Jio has approached local smartphone makers to create a version of its Jio phone that can run on Google’s Android.The company has asked local producers to increase their capacity.Mukesh Ambani,who is pushing ahead with the Indian government’s plan to boost local production,said in a statement that Dixon Technologies India,in partnership with local assemblers like Lava International and Carbon Mobiles, could launch home-made smartphones equipped with cheap 4G technology.
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Pankaj Mohindro,Chairman,India Cellular and Electronic Association, said,”The world has come to realize the importance of investing in business in India and investment in the manufacturing sector is on the rise.”Reliance’s target of producing 150 to 200 million smartphones in the next two years will give a big boost to local factories.
The country will produce an estimated 165 million smartphones by the end of March, and the same number of basic feature phones. The production cost of one-fifth of the smartphones is Rs. Less than 7,000. Reliance’s rival Airtel is also in talks with Suthanik Assemblers to develop its own 4G device.If Reliance succeeds in popularizing its new smartphone, the chances of the Geo platform spreading will increase. Mukesh Ambani’s empire could spread to e-commerce,social media and games. More than 400 million Geo users use the second-generation device and pay બે 2 a month for voice and data.
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These users are the biggest potential for Reliance’s new device. If Reliance can attract them, the market share of Chinese phone makers like Xiaomi could be washed away. Geo has the opportunity to target more than half a billion Indians, said a telecom industry expert.Meanwhile, Reliance’s rival Airtel is also planning to launch both locked and unlocked smartphones with local manufacturers.Locked device currency is scarce in India.These devices come with a tariff plan and a monthly payment option. The currency of such phones is more in western countries.
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Meanwhile,the number of Internet users in India has increased to 74.3 crore by March 2020,a quarterly growth of 3.4 per cent, according to TRAI data.According to the data, Reliance Jio has an overall market share of 52.3 per cent in India, followed by Airtel with 23.6 per cent.Vodafone-Idea ranks third among Internet users with 18.7 per cent market share,according to the Telecom Regulatory Authority of India (TRAI).
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