There have been rumors over the past few weeks that the government intends to bar Chinese manufacturers from the low-cost smartphone market. This is purportedly done to support indigenous businesses since Chinese firms now control the majority of the Indian smartphone market.
Working on 5G Smartphone
Since Chinese smartphone manufacturers hold around 80% of the market share in the budget segment, experts are skeptical that this will be advantageous and think domestic companies might not be able to fill the hole created by the Chinese smartphone producers.
According to Reliance Jio, 5G services will start operating in India this Diwali, beginning in major cities including Delhi, Mumbai, Kolkata, and Chennai. Mukesh Ambani also said during the 45th annual general meeting of Reliance Industries that the company’s telecom division, Reliance Jio, is collaborating with Google to create cost-effective 5G handsets.
Beneficial for Reliance Jio
Reliance Jio may profit from this as domestic companies might not be able to match demand if Chinese companies are prohibited from the affordable smartphone market. Reliance has a solid track record of producing inexpensive cell phones. The company’s Lyf brand, which held the fifth spot in the Indian smartphone market in Q1 2017, had a market share of almost 7%.
According to a Counterpoint analysis, the company’s inexpensive JioPhone grew to be one of the most well-liked entry-level smartphones in the nation during 2018 and held over 35% of the feature phone market share in Q1.
Experts think that a ban in India may be advantageous for Jio. Chinese players will play cautiously in the sub-12,000 area unless there is a certainty. Jio has an advantage, but making 5G available for less than $12,000 is equally difficult, according to Tarun Pathak, research director at Counterpoint Research.
The price of the next Jio and Google gadget is currently unknown. However, we anticipate the business will introduce products priced around $12,000 In the future days, we should learn more about the new smartphone.
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