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Anamika Sodhani made post

Do you see the deal between Google and Reliance having an impact on the Chinese smart phone makers in India?

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2 weeks ago

It is said that every crisis is an opportunity and that is how India is general and Reliance in particular appears to be viewing this. The latest deal between Reliance and Google could be a major challenge for the China entry-level smart phone market. Jio and Google plan to jointly flood the entry level smart phone market with attractively priced models.

This segment is currently dominated by Chinese phones. Currently, Chinese manufacturers like Xaomi, Vivo, Oppo and Redmi dominate the sub-7500 range smart phone market. In India, that sub-7500 market is estimated to be worth $2 billion and growing fast. Chinese firms account for 80% of the smart phone sales in this entry level segment.

That could change drastically. The Google Jio combination will swamp the entry level market and is expected to give the Chinese a run for their money. This would also be a big boost for the much talked about “Make in India” initiative. Last week, Google agreed to infuse $4.5 billion for a 7.37% stake in Jio Platforms, and became the latest marquee investor in Jio.