Reliance Jio is all set to make a big splash in mobile manufacturing after the telecom sector.
New Delhi: Reliance Jio is now gearing up to explode in the entry level segment of mobile manufacturing. Sources said the company may enter into a contract manufacturing deal for this. However, the question sent to Reliance Industries in this regard has not been answered yet.
Reliance Industries’ telecom and technology venture Geo platform has been funded by top private investors from around the world and giant internet companies like Facebook and Google.
Sources said that after gaining leadership in the telecom sector, Reliance Jio’s holding company Jio is now planning to expand its reach in the entire ecosystem of telecom and smartphone sector and convert old as well as new subscribers towards affordable 4G smartphones. These efforts are in line with the statement made by Reliance Industries Chairman Mukesh Ambani to make 2G history in India. This statement involves upgrading millions of customers (especially Airtel and Vodafone Idea) into the smartphone ecosystem.
During the 43rd AGM of RIL, Ambani recently announced that the company wants to be a frontier in the digital and telecom sectors and he gave a glimpse of the ambitious plan of the smartphone market, saying that the company aims to have 50 million mobile subscribers by 2023. He also announced the launch of a cheap 4G and 5G device based on Geo’s new partner Google’s Android OS.
“There are millions of phone users who want to turn their traditional feature phones into smartphones. The only question is smartphone affordability,” he said. So we have decided to take up this challenge. We are confident that we can make an entry level 4G smartphone … or even a 5G smartphone. It is also much cheaper than its current prices. ‘ He further said that this is in partnership with Google.
Reliance has previously sold handsets with SIM M bundled devices, but their production was outsourced through different contracts.
On the other hand, the central government’s PLI benefit scheme is almost ready to promote smartphone manufacturing in India. A total of 7 manufacturing companies in India and 5 international manufacturing companies are ready to avail benefits under this program.
Local companies include two Lava Group companies (Lava and Swelling), two Dixon Technologies companies (Dixon and Paget Electronics), Bhagwati (Micromax), Optimus Infra and United Telelinks.
The top international contract manufacturers are US electronics giant Apple (Foxconn, Hon Hai, Rising Star, Wistron and Pegatron), as well as Korean company Samsung.
Reliance Jio’s plan to create a bundled ecosystem of mobile and data plans with an entry into mobile manufacturing will increase pressure on Chinese and local handset companies, especially those operating at the entry level.