4 challenges in front of the cheapest smartphone: The cheapest 4G smartphone is less than Rs 4000, the biggest challenge is to give a phone with better features and longer battery in less than this
Reliance Jio’s Android smartphone JioPhone Next has been launched, the company claims that it is the world’s cheapest smartphone. It has been prepared jointly by Jio and Google. Jio wants to take this smartphone to the 300 million people of India who are using 2G feature phones. Financial services company IIFL Securities says Reliance Industries will need to provide a subsidy of Rs 15,000 crore to sell 75 million units of the smartphone.
IIFL Securities said that the price of JioPhone Next is being discussed in the market at Rs. The company may have to pay a subsidy of Rs 2000 on each of its handsets.
According to the calculation, the price of JioPhone Next will be around Rs 4,000. At the same time, the company will need to give a subsidy of Rs 2000 on each of its units. The cheapest 4G smartphone in the market right now costs around Rs 3800. Whereas the starting price of 4G smartphones with popular brands goes up to around Rs 6,000.
The analyst also says that attracting users with over 300 million feature phones in India to JioPhone Next will not be easy. Reliance is not the only challenge to fix the price of the phone, but it also has to take into account that people are also paying attention to things like better interface, advanced features, longer battery in the phone.
Finding out the cost of JioPhone Next is also a big challenge
Company IIFL Securities says that even if Jio and Google develop a lightweight operating system for this smartphone, but it can cut the price only in some areas. For example, about $ 5 (about Rs 370) in the display and about $ 4 (about Rs 300) in the memory will cost the bill of material (BOM) $ 50 (about Rs 3700). In such a situation, finding the price of the phone will become a difficult task.
IIFL Securities, based on its analysis, says that Jio can lift a subsidy of 2 to 4 billion dollars (Rs 15 to 30 thousand crores), which it will cover in 1 to 2 years due to its subscribers and large market share. can. In such a situation, this can be a great offer for Jio.
Goldman Sachs said in a report that if the price of JioPhone Next is equal to 2G feature phone i.e. around 1100 to 1500 rupees, then Jio can add 75 million (75 million) new users by the financial year 2025. However, it becomes necessary to subsidize the phone to reach the customers.
In this regard, Tech Expert Praval Sharma said, “The price of the phone is determined not by a unit, but by how many million orders are being received. The price of the phone is in the 40-60 ratio in hardware and software. It can be assumed that the company has to spend around Rs 1500 to 2000 in hardware for manufacturing a 4G smartphone. Display size, camera megapixels also play an important role. About 2000 rupees have to be spent for this. The cost of software which does not get updates gets reduced.
What can be the planning of IT Jio?
Mukesh Ambani had said at the AGM that JioPhone Next will be the cheapest smartphone in the world. Since then, the market has been heated regarding the price of the phone. The price of the phone is also being discussed because it has become a threat to the domestic and foreign smartphone companies. Reliance Jio has the largest and strongest 4G network. It also has more than 40 crore subscribers. However, the company aims to reach out to the people using 2G feature phones in the country. For this he will need strong planning.
When Reliance Jio started its 4G network in the country, then it had given all the facilities to the people free of cost for about 2 years. Initially people were hesitant to join Jio. Although the tempting offers of free unlimited internet, free calling across the country, free roaming across the country, unlimited messages, free Jio apps at the speed of 4G were liked by the people and after a few months its userbase started to strengthen. In such a situation, the company can once again play a similar bet to bring JioPhone Next to the people.