JioPhone Next launch postponed!
Technology
The launch of the much-awaited JioPhone Next said to be the cheapest 4G smartphone made, is postponed and now will be rolled out ahead of Diwali.
Reliance’s 44th AGM recently concluded amidst much hype that the phone will be launched on September 10, 2021, on the eve of Ganesh Chaturthi.
However, a statement released by Jio on Thursday midnight states, “Both businesses have begun testing JioPhone Next with a small group of consumers for further refinement and are actively working to make it available more widely in time for the Diwali festival season.”
The statement also added, “This extra time will also aid in mitigating the present industry-wide, global semiconductor shortages.”
In spite of the delayed launch, what can we expect from this cheapest 4G smartphone ever made?
Continues the legacy of JioPhone and JioPhone 2
Ultra-affordability: Price set to appeal to the present-day feature phone user (expected to be anywhere between INR 3000 to 5000)
4G technology: Faster, more secure, more reliable, and supports interactive media none of which are possible with 2G powered feature phones
An array of new features
JioPhone Next also boasts of an array of new features giving it a significant edge over Jio Phone and all the feature phones in that price segment:
Android OS: All key offerings of Android like Voice assistant, Play Store comes with the phone. This means the availability of apps for video calls, streaming, ubiquitous data access, social media platforms, etc.
Accessibility for Indian audience: Language translation, automatic read-aloud of screen text to cater to all Indians.
JioPhone Next target market
Today, there are 300-400 million users who are still stuck with feature phones with limited 2G internet. This is JioPhone Next's target market!
In the current times, when we have to recalibrate to live in an endemic environment, the need for these 400 million people to stay digitally connected through voice and video calls is extremely apparent.
The thing that’s stopping them, however, is the exorbitantly priced smartphone that comes with 3G/4G internet and Android.
Partnership with Google
Reliance, in collaboration with Google, is set to tackle the issues of both connectivity and price!
This flavour of Android is said to run with less than 2GB RAM and at the Reliance AGM, Google CEO Sundar Pichai revealed, “Our teams have optimised a special version of Android specifically for this phone. It is built for India and for users who will experience a smartphone for the first time.”
What does this mean for the market?
The Jio platform already has > 480 million subscribers and with JioPhone Next, this number will only grow, potentially making them a monopoly in the telecom industry.
In terms of the handset market, Reliance and Google will be competing in a fragmented market with much smaller and scattered players, and are sure to capture a major portion of the market share of this previously untapped market by any significant competitors.
Reliance, with its winning strategy of ruthless discounting, and Google, developing a version of Android exclusively fit for the Indian audience experiencing quality internet for the first time are definitely set up for success.
How the launch of JioPhone Next affects the existing smartphone prices remains to be seen, now that we know it will be possible to fit Android OS and 4G offerings into such low prices.
Automobile industry’s not so happy Diwali!
Business
Now's not a good time to be an automaker in India! After an abysmal 2020, the automobile industry pinned its hopes on the pent-up demand of consumers to revive its 2021 topline. However, the second wave of the pandemic shattered all its hopes of a recovery in the first half itself.
Light at the end of the tunnel?
With September marking the onset of India's festive season, the industry players once again anticipate a spike in sales.
However, the supply chain crisis (yet again!) driven by shortages in semiconductor and shipping containers along with a hike in commodity prices predicts a bumpy ride for the automakers!
Global semiconductor crisis
The Indian automobile industry is a victim of an unprecedented global semiconductor shortage. During the lockdown, global consumer demand for electronic goods such as computers, gaming and smartphones saw an uptick - all of which require sophisticated silicon chips for their functioning.
Tech giants producing these electronic goods pay hefty amounts to the chipmakers. The auto industry, as a consequence, has lost its bargaining power with the chip suppliers, ending up as second in line to access the limited stock.
Shipping container crisis
The world is facing an acute shortage of shipping containers due to pandemic-led lockdowns and movement restrictions across the globe.
Containers remain piled up at import hubs while their availability wanes at export hubs - an imbalance raising the freight charges drastically. As a result, the Indian automobile industry is struggling to import auto parts further disrupting its assembly lines.
Macroeconomic changes
Regulatory changes: In a move to reduce carbon emissions, the Government of India has mandated all automakers to comply with the highest standards of emissions - Bharat Stage-VI standards. This mandate, although well intended, significantly increases the on-road price of vehicles as the automakers now have to deploy sophisticated fuel injection systems to be compliant with the standards.
Commodity prices: The ever-increasing fuel prices add to the cost of vehicle maintenance as well - reducing the overall consumer demand.
Production cut
Owing to the supply constraints, Maruti Suzuki - India's largest automaker, predicts production to fall by 60% in its Gujarat and Haryana plants. On similar lines, Mahindra & Mahindra announced a 25% production cut. It also revealed a plan to halt its production for a week in September.
Federation of Automobile Dealers Association (FADA) reported a decline in August retail vehicle sales, a fall of 11% as compared to July.
Hikes and shortages
MRP hike: With the increase in input costs and transportation charges, the burden is now being slipped to the end consumers. Maruti Suzuki is set to increase the price of its certain models by +1.9%. With no signs of recovery in near future, the stock prices of affected Indian auto companies took a beating.
Inventory shortage: The dealers across the country are complaining of no inventory despite growing consumer interest.
Given all this, it is highly unlikely that you, the consumer, will grab a vehicle of your choice anytime soon!
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