Smartphones have become very important ever since schools started taking online classes due to ongoing crises, which is why the sale of affordable smartphones has been increased in India. However, the competition in the segment is likely to increase as Reliance Jio is all set to bring its ultra-affordable smartphone to the country.
The JioPhone Next is expected to give tough competition to Realme, Micromax, Lava, and Redmi. The company has not announced the pricing of the smartphone; however, analysts believe that the smartphone is priced between Rs. 2,500 to Rs. 3,000.
India Mobile Phone Users: Details
Currently, India has 850 million mobile phone users and 550 million users are using smartphones. There are 300 million users are using feature phones in the country and Jio is eyeing the same market.
"Jio and Google have sought to address not just smartphone affordability, but are also solving for the 3Vs - voice, vernacular and video, for consumers from aspirational India. As many first-time internet users seek to get connected digitally, offerings such as the JioPhone Next are well-timed to bridge India's digital divide in the post-pandemic future," Prabhu Ram, Head - Industry Intelligence Group, CMR said.
Meanwhile, a report by Counterpoint said that 2G users of Airtel and Vodafone-Idea are an important segment for Reliance Jio's upcoming smartphone.
Smartphone Penetration In India
"All India smartphone penetration stands at 42.20 percent. The potential is huge, but it's more of an economic issue than a technology issue. This means we have to somehow connect this unconnected base with the internet. There are some thresholds which we can't overcome," said Faisal Kawoosa, founder and chief analyst, TechArc.
He states that JioPhone pricing needs to be aggressive to attract feature phone users to its platform.
It is worth noting that this is the third time when Jio is launching handsets in the country. The company had launched LYF smartphones, then JioPhone in 2017, and now again bringing new devices in September this year. However, attracting feature phone users is going to a big task for Reliance Jio as BSNL is leading the same segment due to its presence in the rural areas.