BENGALURU: The Jio-Google budget phone, touted as the world’s cheapest smartphone, will likely capture one-sixth of India’s 300 million feature phone user base, top sector analysts told this publication. However, Mukesh Ambani’s ambition to attract the next 100 million users in India through the budget smartphone will have to pass value-proposition test, especially if it is priced at Rs 4,000 ($50 above).
Faisal Kawoosa, Chief Tech analyst and founder at TechArc, said that according to their estimates, the Jio-Google phone may capture a 50 million-strong user base in India, “pushing smartphone shipments to 200 million per annum from next year onwards.”
Sales of smartphones priced below Rs 6,000 have shrunk over the past few years, constituting just 5 per cent of the total sales volume across the country. “This is partly due to sub-optimal user experience that these phones were able to provide. Hence, for the much touted world’s cheapest Jio-Google phone to help an average feature phone user upgrade to a smartphone for at least Rs 3,000 or more... it will have to meet the quality expectations,” he added.
Reliance’s earlier attempts to integrate some smartphone features into a 2G phone failed to capture much of the feature phone market due to sub-par user experience, analysts note, although affordability was the focus even then. However, Ambani and Google CEO Sundar Pichai have stated that the new budget phone’s Android operating system has been optimized for Indian markets and will have language translation as a key feature.
Last week, Google’s India head and Managing Director, Sanjay Gupta had told this publication that language enablement will be the focus for a growing base of internet users in India through the affordable smartphone. The model will be unveiled on September 10, Ganesh Chaturthi.
Pankaj Mohindroo, Chairman, Indian Cellular and Electronics Association said that the smartphone industry continues to face a supply crunch amidst rising demand. He noted that the huge price gap between a feature phone (Rs 1000) and entry level smartphone (Rs 5,000) will be a key challenge to overcome for Reliance-Google.
“The industry has consolidated and there are major global players who are producing some good quality entry-level phones at a production capacity of 15-20 million per month with very low-margins. To be able to secure supply in this environment to produce smartphones more efficiently without any manufacturing experience and surpass the quality level at this price will be a feat,” Mohindroo noted.
Performance a key factor
Earlier attempts to integrate some smartphone features into a 2G phone failed to capture much of the feature phone market due to sub-par user experience. However, Ambani and Google CEO Sundar Pichai have stated that the new phone’s Android operating system has been optimized for Indian markets