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Covid-19 confused Reliance and Google’s plans to disrupt the Indian smartphone market




The global semiconductor shortage has shaken the production of all kinds of high-tech products, from automobiles to televisions. Now it is delaying the big plans of Reliance and Google for the Indian smartphone market.

The two companies have partnered to connect hundreds of millions of Indians to Jios’ cheap high-speed data network and launch JioPhone Next, an ultra-cheap 4G smartphone aimed at further revitalizing the Internet services market here. I am creating.

Launch delay

The long-awaited mobile phone launch was scheduled for September 10, but instead, Reliance Industries’ telecom unit Jio has sent a release announcing the last-minute postponement of the mobile phone announcement.

JioPhoneNext. Photo courtesy of: Reliance Jio

The two companies have made significant strides in testing phones with a limited number of users and are working towards launching a new product during the November Diwali season, when people often sell new products as gifts. Told.

This additional time will also help alleviate the current global semiconductor shortage across the industry, Jio and Google said in a joint statement.

Indian tech companies rely heavily on semiconductor imports.

When Jio first began offering phones, news channel NDTV reported that the phones used components from US chip maker Qualcomm. Meanwhile, Unisoc, a division of Tsinghua Unigroup, a Chinese chipset maker, said it has worked with Indian phone makers, including Reliance Jio, in the past. Recently, Jio also announced a partnership with Dutch chip giant NXP for 5G.

The phone itself was initially partially manufactured by Bangalore-based UTL Neolyncs, the Indian financial publication The Economic Times reports.

Reliance declined to comment on Quartz’s inquiry about JioPhoneNext’s semiconductor supply chain.

Smartphone revolution

Calls can be delayed, but analysts say Mukesh Ambani, India’s wealthiest man and chairman of Lilians, will hand over many of India’s 3 billion rupee 2G users to the first feature-rich smartphones. I believe I can do it. This will expand Jios’ existing customer base to over Rs 4 billion with 4G Internet services.

Sundar Pichai, CEO of Google and Alphabet, was built for India when they provided the latest information on their last phone collaboration in June, with millions of new users experiencing the Internet for the first time. Said to open up new possibilities. Year.

The dual SIM phone has a 13-megapixel primary camera and a 5.5-inch touchscreen display, which can cost less than 5,000 rupees.

Jio started selling mobile phones in 2017 and currently offers feature phones for less than 3,000 rupees. It provides screen text translation and auto-reading, voice assistants, and augmented reality filters for different Indian languages ​​to accommodate many Indian languages ​​and different levels of education.

The release of low-cost yet powerful smartphones means more losses for other Indian telecommunications companies and new competition for Chinese smartphone makers that dominate India’s price-conscious market. There is a possibility.

Facial firm Jeffreys could increase Reliance revenue by up to 10% last week when JioPhone Next could increase Reliance revenue by up to 10% in the fiscal year beginning April 2022, but revenue from India’s second-largest telecommunications service provider, Bharti Airtel. Said that it could have a negative impact of at least 3%.

This article was first published in Quartz.




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