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Google Jio and Mukesh Ambani are hoping to disrupt one of the world’s largest unused markets, launching a device that they hope will be cheaper to convert 450m Indians on “silent” phones into smartphone users.
JioPhone Next, a successor to Ambani JioPhone in the past, was developed by companies to use the Android version. It will offer several Google and Jio apps, with voice support in several Indian languages for illiterate users. Investigators believe it will sell for less than $ 50.
“Jio was able to do two things. One is the mega set. Again, break the tree [barrier], ”Says Neha Singh, founder of data providers at Tracxn in Bangalore.
When he asked how much the company would spend on the phone, its goal was clear: to raise as many 450m Indians as possible using 2G phones and as old as possible.
Join Sundar Photayi, chief executive of Google’s parent company Alphabet, who thinks JioPhone Next could spread anywhere in the world, as Google tries to attract what it calls “next billion” internet users around the world and Jio is considering growing abroad.
“Google wants to be the first place to call these users,” said Vivekanand Subbaraman, a market analyst at Ambit Capital in Mumbai. “These new internet users have never used a computer. They do not know that the internet is an open source. For new internet users, these apps are the internet. ”
The video will be a great opportunity. Finding smartphone users, many of whom do not have televisions, watching YouTube or cricket matches shown on JioTV to bring advertising and revenue, as well as a platform to sell services as payment.
For Jio, which was launched in 2016 and used the lowest prices to inflate 426m users, is a chance to repeat the success of its first JioPhone. Some have made 4G smartphones to save $ 1,500 ($ 20), which is refundable three years later, To help move more than 100m equipment.
Jio’s growing size contributed to the attraction $ 20bn in cash last year from Facebook and Silver Lake alongside Google. But the phone company is under pressure to increase its user base and earn more money.
More than five of Jio’s subscribers are not working, and their monthly expenditure is about Rs138 ($ 1.85) left by partner Bharti Airtel. Some have said they will enroll Jio in state markets, but they need to show for the first time that it could bring more Indians to mobile phones, and force them to use the internet.
JioPhone Next is facing a climbing problem, however. The Indian mobile phone market is dominated by Chinese brands such as Xiaomi and Vivo, and Google’s previous experiments on the market – as with its Pixel phone – failed.
The nearly 80m existing JioPhone is expected to complete their contracts in the next two years, according to business bank Jeffery, making them a slightly lower yield on businesses that entice them to switch.
More than 2m users of the remaining 2G are also a difficult market to destroy. Many, made up of people at risk of economic hardship such as migrant workers, are used to lowering prices by as much as Rs50 ($ 0.67) per month to communicate with families in their home country.
Companies have not released the price of this new phone. Given the shortage of chips and other mobile devices, participants in the industry doubt that a price of $ 50 or less can be achieved without the use of heavy costs.
Pankaj Mohindroo, chairman of the India Cellular & Electronics Association, which represents mobile phone manufacturers, I do not think the world would allow a lower price compared to its predecessors. I don’t see an earthquake coming that way. ”
Google is experimenting with similar applications elsewhere, last year it teamed up with a French Orange manager to launch a $ 30 “Sanza touch” mobile phone in several African countries. It is said to be the cheapest phone available, but sales are limited.
For Ambani, the new mobile phone is one of the few things he hopes will turn his hard-working team into what he calls the “international expert” in India.
But only four of Jio’s apps are part of the 100-member Google Play Store, according to App Annie, plus the JioSaavn and MyJio music promotional app, which sells a number of services such as phones or queries. Jio’s chat and shopping programs follow opponents.
Currently, Jio’s online shopping business, JioMart, is located in all 200 cities and offers lower prices compared to its competitors, including Tata’s BigBasket or Grofers sponsored by SoftBank.
But it depends on trends such as software download, revenue and basket size, according to credit card company Motilal Oswal. The agreement with Facebook to provide the service via WhatsApp is still under trial for more than a year after its announcement.
Google hopes that its partnership with Ambani will help avoid the problems that Facebook first tried to conquer the Indian internet market, prompting regulators to stop trying to offer. limited free internet so that it can guide its users to its applications.
Neil Shah, a researcher at Counterpoint Research, said the “biggest drawback” to the new phone was its price. He also said that even after receiving the money, users would probably have to double their monthly subscription for cheap 2G devices.
Another drawback is that phones can be customized to fit industry needs. Given the shortage of components such as semiconductors, Mohindroo estimates that Jio will be reduced by sending a few million weapons a month in the future.
“The global market is now heavily integrated with global players with the largest shares,” he said. “Finding weapons against missing giants can be very difficult.”
Reliance on Google did not respond.
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