Reliance Jio Is Reportedly Launching A $50 Android Smartphone In India

Indian tech giant Reliance Industries has asked suppliers to increase production capacity, aiming to produce 200 million smartphones over the next two years. This will be a massive boost to India's technological ambitions, as well as to compete with big players like Xiaomi.

According to an insider, Reliance is planning to release an Android version of its Jio phone for about Rs. 4,000 rupees ($54). This affordable smartphone is also said to be sold together with low-cost mobile packages from Reliance Jio.

Reliance, once a successful mobile network operator at extremely competitive rates, now uses a similar tactic to the smartphone industry. Reliance's plan also aligns with the direction of the Indian government, as it facilitates local assemblers such as Dixon Technologies India, Lava International, and Karbonn Mobiles.

In the period from March of last year to March of this year, a total of approximately 165 million smartphones have been assembled in India. About one-fifth of smartphones are priced under Rs. 7,000 (around $95).

A rather significant factor is that the Covid-19 epidemic is pushing people to upgrade their feature phones to smartphones, creating new opportunities for the market. For example, parents are willing to buy a mobile device for their child so they can keep up with online classes.

“Jio has an opportunity to target more than half billion Indians who don’t own a smartphone and trigger a blue ocean market opportunity,” said Neil Shah, research director at Counterpoint Research. “With Reliance expected to work with Indian vendors, Chinese brands will lose out on a potential opportunity and market share.”

Xiaomi still retained its No. 1 position in the Indian smartphone market in the second quarter of 2020, although sales decreased by half. According to the latest data from market research firm Canalys, Xiaomi sold 5.3 million smartphones in the second quarter in India.

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