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oi-Priyanka Dua

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Published: Friday, July 16, 2021, 18:41 [IST]

Reliance Jio is planning to launch its ultra-affordable smartphone in September this year and is expected to give a tough fight to other players. However, a new report from Canalys believes that the smartphone is not going to make any major impact in the short term.

Why Is Reliance Jio's New Smartphone Going To Face Challenges?

The research firm believes that India’s largest telecom operator Reliance Jio is likely to face major issues due to chip supply shortages and the prices of the components have been increasing.

Smartphone Makers Facing Shortages Of Components

It is worth noting that components shortages are creating supply chain problems and manufacturing hurdles for all smartphone makers. The delivery and the cost of all important components, such as displays and chipsets have been increased due to the COVID-19 pandemic.

This means Reliance Jio might have to pay from its pocket for keep selling the upcoming device to increase its market share in the telecom and smartphone sector. However, the report added that any other problem with components would be a barrier for Reliance Jio and local partners.

It said that established brands already have local partners so that they can manage their inventory better in the ongoing situation. In addition, Canalys pointed out that budget smartphones launched in a country like India should last for close to four years without any support.

This means JioPhone Next should offer high quality, durability, and affordability. This is the only way they can give tough competition or dent the budget phone space. Furthermore, the report highlighted that Reliance Jio’s smartphone is going to face another challenge as the income of mass-market has been decreased.

This could affect shipments and the company might not be shipped millions of devices in the first year. However, a slight recovery in the smartphone industry might help Reliance Jio to increase its sales in the first year.

It is worth noting that, that the much-awaited smartphone is likely to dent the market share of telecom players and smartphone companies in India as it is going to be ultra-affordable might be less than Rs. 3,500. This means there are high chances that Jioattract all 2G users.

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Story first published: Friday, July 16, 2021, 18:41 [IST]

Why Is Reliance Jio’s New Smartphone Going To Face Challenges?